Unusual Machines Announces Closing of $1.95 Million Private Placement
Unusual Machines (NYSE American: UMAC) has closed a $1.95 million private placement with institutional investors. The company issued 1,286,184 units at $1.52 per unit, with each unit comprising one common stock share and one warrant exercisable at $1.99 per share. The warrants become exercisable after 180 days and have a 5.5-year term. Company insiders, including CEO Allan Evans and two board members, invested $250,000 in the placement. The proceeds will be used for general corporate purposes and working capital. Dominari Securities acted as the exclusive placement agent.
Unusual Machines (NYSE American: UMAC) ha concluso un collocamento privato di 1,95 milioni di dollari con investitori istituzionali. L'azienda ha emesso 1.286.184 unità a 1,52 dollari per unità, con ogni unità composta da una azione ordinaria e un warrant esercitabile a 1,99 dollari per azione. I warrant diventano esercitabili dopo 180 giorni e hanno una durata di 5,5 anni. I membri interni dell'azienda, incluso il CEO Allan Evans e due membri del consiglio, hanno investito 250.000 dollari nel collocamento. I proventi saranno utilizzati per scopi aziendali generali e capitale circolante. Dominari Securities ha agito come agente esclusivo del collocamento.
Unusual Machines (NYSE American: UMAC) ha cerrado un colocación privada de 1,95 millones de dólares con inversores institucionales. La compañía emitió 1.286.184 unidades a 1,52 dólares por unidad, con cada unidad compuesta por una acción ordinaria y un warrant ejercitable a 1,99 dólares por acción. Los warrants se volverán ejercitables después de 180 días y tienen un plazo de 5,5 años. Los miembros internos de la empresa, incluido el CEO Allan Evans y dos miembros de la junta, invirtieron 250.000 dólares en la colocación. Los ingresos se utilizarán para fines corporativos generales y capital de trabajo. Dominari Securities actuó como el agente exclusivo de la colocación.
Unusual Machines (NYSE American: UMAC)는 기관 투자자들과 195만 달러 규모의 사모 배정을 완료했습니다. 회사는 각 단위가 한 주식과 1.99달러에 행사할 수 있는 워런트를 포함하여, 단위당 1.52달러에 1,286,184개의 단위를 발행했습니다. 워런트는 180일 후에 행사 가능하게 되며, 유효기간이 5.5년입니다. CEO Allan Evans 및 이사회의 두 명의 구성원을 포함한 내부insider인 직원들은 이 배정에 25만 달러를 투자했습니다. 수익금은 일반 기업 목적 및 운영 자본에 사용될 것입니다. Dominari Securities는 독점적인 배정 에이전트로 활동했습니다.
Unusual Machines (NYSE American: UMAC) a clôturé un placement privé de 1,95 million de dollars avec des investisseurs institutionnels. L'entreprise a émis 1.286.184 unités à 1,52 dollar par unité, chaque unité comprenant une action ordinaire et un warrant exerçable à 1,99 dollar par action. Les warrants deviendront exerçables après 180 jours et ont une durée de 5,5 ans. Les initiés de l'entreprise, y compris le PDG Allan Evans et deux membres du conseil d'administration, ont investi 250.000 dollars dans le placement. Les produits seront utilisés à des fins générales de l'entreprise et pour le fonds de roulement. Dominari Securities a agi en tant qu'agent exclusif du placement.
Unusual Machines (NYSE American: UMAC) hat eine private Platzierung über 1,95 Millionen Dollar mit institutionellen Investoren abgeschlossen. Das Unternehmen hat 1.286.184 Einheiten zu je 1,52 Dollar ausgegeben, wobei jede Einheit eine Stammaktie und ein Warrant umfasst, der bei 1,99 Dollar je Aktie ausgeübt werden kann. Die Warrants werden nach 180 Tagen ausübbar und haben eine Laufzeit von 5,5 Jahren. Insider des Unternehmens, einschließlich CEO Allan Evans und zwei Mitglieder des Vorstands, investierten 250.000 Dollar in die Platzierung. Die Erlöse werden für allgemeine Unternehmenszwecke und Betriebskapital verwendet. Dominari Securities fungierte als exklusiver Platzierungsagent.
- Secured $1.95 million in funding through private placement
- Insider participation with management investing $250,000, showing confidence in the company
- Potential dilution of existing shareholders through new share issuance
- Warrant exercise price of $1.99 represents potential future dilution
- Additional dilution possible due to anti-dilution provisions in warrants
Insights
This
The structure, involving 1,286,184 units, represents substantial dilution to existing shareholders. The warrant overhang and potential future dilution from the adjustable exercise price create additional pressure. While the capital injection provides operational runway, the terms reflect the challenging financing environment for micro-cap companies and their options for raising capital.
The private placement's structure includes key investor protections through anti-dilution provisions and registration rights, requiring the company to file registration statements for resale. The 180-day exercise restriction on warrants provides some near-term protection against immediate dilution. The involvement of multiple legal firms and compliance with Securities Act exemptions demonstrates proper regulatory framework, though the adjustable warrant terms could create complex compliance requirements for future capital raises.
ORLANDO, FL / ACCESSWIRE / October 30, 2024 / Unusual Machines, Inc. (NYSE American:UMAC) ("Unusual Machines" or the "Company"), a drone and drone components manufacturer, today announced the closing of a private placement with certain institutional investors. The aggregate gross cash proceeds were approximately
In connection with the private placement, the Company issued an aggregate of 1,286,184 units at a per unit price of
Allan Evans, the Company's Chief Executive Officer and Sanford Rich and Robert Lowry, each a member of the Company's Board of Directors, invested an aggregate of
Dominari Securities LLC acted as the exclusive Placement Agent for the private placement. Nason, Yeager, Gerson, Harris & Fumero, P.A served as counsel to the Company. Sichenzia Ross Ference Carmel LLP served as counsel to Dominari.
The securities described above were sold in the private placement and are exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the Securities and Exchange Commission (the "SEC") covering the resale of the common stock sold in the private placement and the common stock issuable upon exercise of the warrants sold in the private placement.
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 Unusual Machines
Unusual Machines manufactures and sells drone components and drones across a diversified brand portfolio, which includes Fat Shark, the leader in FPV (first-person view) ultra-low latency video goggles for drone pilots. The Company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot e-commerce store. With a changing regulatory environment, Unusual Machines seeks to be a dominant Tier-1 parts supplier to the fast-growing multi-billion-dollar U.S. drone industry. According to Fact.MR, the global drone accessories market is currently valued at
For more information visit Unusual Machines at https://www.unusualmachines.com/. The Company's website is not incorporated into this press release.
Contact:
CS Investor Relations
917-633-8980
investors@unusualmachines.com
SOURCE: Unusual Machines, Inc.
View the original press release on accesswire.com
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