Ondas Holdings Inc. Announces $34.5 Million Convertible Note Financing

Rhea-AI Summary

Ondas Holdings Inc. (Nasdaq:ONDS) announced a $34.5 million securities purchase agreement for senior convertible notes due 2023. The notes offer an original issue discount of approximately 13%, leading to gross proceeds of $30 million. The funds will primarily support general corporate purposes, including capital expenditures and working capital. Oppenheimer & Co. Inc. is the sole placement agent. The offering is conducted under a registered statement with the SEC, and additional closings of up to $34.5 million may follow, depending on the note holder's election.

Positive

• Secured $34.5 million in convertible notes, improving cash flow.
• Use of proceeds targeted for capital expenditures and working capital, aimed at business growth.

Negative

• Notes due in 2023 could indicate short-term funding pressure.

WALTHAM, MA / ACCESSWIRE / October 26, 2022 / Ondas Holdings Inc. (Nasdaq:ONDS) ("Ondas" or the "Company"), a leading provider of private wireless, drone and automated data solutions through its wholly owned subsidiaries, Ondas Networks Inc. ("Ondas Networks") and American Robotics, Inc. ("American Robotics" or "AR"), announced today the signing of a securities purchase agreement for $34.5 million in aggregate principal amount of 3% senior convertible notes due 2023. The notes have an original issue discount of approximately 13% resulting in gross proceeds to the Company of $30.0 million. Also, if elected by the note holder, the Company may complete additional closings of up to an additional $34.5 million in aggregate principal amount.

The Company intends to use the net proceeds of this offering for general corporate purposes, which include funding capital expenditures and working capital.

Oppenheimer & Co. Inc., is acting as the sole placement agent for the offering.

The securities are being offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-252571) that Ondas previously filed with the U.S. Securities and Exchange Commission ("SEC"). The offering will be made only by means of a written prospectus supplement and the accompanying prospectus that form a part of the registration statement. An electronic prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC. Copies of the prospectus supplement and the accompanying prospectus relating to these securities will be available on the SEC's website at www.sec.gov and may also be obtained, when available, from Oppenheimer & Co. Inc. Attention: Syndicate Prospectus Department, 85 Broad Street, 26th Floor, New York, NY 10004, or by telephone at (212) 667-8055, or by email at EquityProspectus@opco.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Ondas Holdings Inc.
Ondas Holdings Inc. ("Ondas") is a leading provider of private wireless data and drone solutions through its wholly owned subsidiaries Ondas Networks Inc. ("Ondas Networks") and American Robotics, Inc. ("American Robotics" or "AR"). Ondas Networks is a developer of proprietary, software-based wireless broadband technology for large established and emerging industrial markets. Ondas Networks' standards-based (802.16s), multi-patented, software-defined radio FullMAX platform enables Mission-Critical IoT (MC-IoT) applications by overcoming the bandwidth limitations of today's legacy private licensed wireless networks. Ondas Networks' customer end markets include railroads, utilities, oil and gas, transportation, aviation (including drone operators) and government entities whose demands span a wide range of mission critical applications. American Robotics designs, develops, and markets industrial drone solutions for rugged, real-world environments. AR's Scout System™ is a highly automated, AI-powered drone system capable of continuous, remote operation and is marketed as a "drone-in-a-box" turnkeydata solution serviceunder a Robot- as-a-Service (RAAS) business model. The Scout System™ is the first drone system approved by the FAA for automated operation beyond-visual-line-of-sight (BVLOS) without a human operator on-site. Ondas Networks and American Robotics together provide users in rail, agriculture, utilities and critical infrastructure markets with improved connectivity and data collection capabilities.

For additional information on Ondas Networks and Ondas Holdings, visit www.ondas.com or follow Ondas Networks on Twitter and LinkedIn. For additional information on American Robotics,visit www.american-robotics.com or follow American Robotics on Twitter and LinkedIn.

Information on our websites and social media platforms is not incorporated by reference in this release or in any of our filings with the U.S. Securities and Exchange Commission.

Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are "forward-looking statements" withinthe meaning of the PrivateSecurities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading "Risk Factors" discussed under the caption"Item 1A. Risk Factors" in Part I of our most recentAnnual Report on Form 10-K or any updates discussed under the caption "Item 1A. Risk Factors" in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.

Company Contact:
Derek Reisfield, President and CFO
Ondas Holdings Inc.
888-350-9994 x1019
ir@ondas.com

Investor Relations Contact:
Cody Cree and Matt Glover
Gateway Group, Inc.
949-574-3860
ONDS@gatewayir.com

SOURCE: Ondas Holdings Inc.

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https://www.accesswire.com/722326/Ondas-Holdings-Inc-Announces-345-Million-Convertible-Note-Financing

FAQ

What is the amount Ondas Holdings raised in convertible notes?

Ondas Holdings raised $34.5 million in convertible notes.

What are the terms of Ondas Holdings' convertible notes?

The convertible notes have a 3% interest rate and are due in 2023.

Who is the placement agent for Ondas' offering?

Oppenheimer & Co. Inc. is the sole placement agent for the offering.

How will Ondas Holdings use the proceeds from the convertible notes?

Proceeds will be used for general corporate purposes, including capital expenditures and working capital.

Is there a possibility for additional closings on the Ondas convertible notes?

Yes, there may be additional closings of up to $34.5 million, if elected by the note holder.