Actelis Networks to raise $1.6 million through warrant exercise

Published 02/09/2025, 18:50
Actelis Networks to raise $1.6 million through warrant exercise

FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ:ASNS), a micro-cap technology company with a market capitalization of $4.08 million and trailing twelve-month revenue of $5.26 million, announced Tuesday it has entered into a definitive agreement for the immediate exercise of certain outstanding warrants at a reduced price, expected to generate approximately $1.6 million in gross proceeds.

The cyber-hardened networking solutions provider, which according to InvestingPro data is experiencing significant cash burn with negative EBITDA of $5.67 million, said holders will exercise warrants to purchase 4,270,197 shares of common stock at a reduced exercise price of $0.37 per share, down from original exercise prices ranging from $1.18 to $2.00 per share. These warrants were originally issued between December 2023 and July 2024.

As part of the transaction, Actelis will issue new unregistered warrants to purchase up to 6,405,296 shares of common stock at an exercise price of $0.37 per share. These new warrants will become exercisable upon stockholder approval and will have expiration periods of either 24 months or five years following that approval.

The company plans to use the proceeds for working capital and general corporate purposes, according to the press release statement. Rodman & Renshaw LLC and H.C. Wainwright & Co. are acting as financial advisors for the transaction.

The closing is expected to occur around September 3, 2025, subject to customary closing conditions. The new warrants have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption.

Actelis Networks specializes in hybrid fiber-copper networking solutions for IoT applications across government, transportation, military, utility, rail, telecom, and campus networks. InvestingPro analysis reveals the company’s challenging financial position, with a WEAK Financial Health Score and revenue declining by 12.53% over the last twelve months. For deeper insights into ASNS’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, subscribers can access the full Pro Research Report.

In other recent news, Actelis Networks has secured a $0.5 million order from the Federal Aviation Administration to provide advanced hybrid-fiber networking solutions. This order is part of the FAA’s broader modernization initiative, supported by a $12.5 billion funding allocation approved by Congress. In addition to this development, Actelis Networks has launched a restructuring plan aimed at reducing expenses by approximately 20% by the end of 2025. The restructuring will involve implementing AI, outsourcing, and offshoring to lower-cost regions.

Furthermore, Actelis Networks announced the appointment of Mark DeVol as Chief Revenue Officer Americas, effective August 27, 2025. DeVol brings over 30 years of experience in the defense, government, and telecommunications sectors. Additionally, the company has decided to incorporate cryptocurrencies into its treasury management strategy. The board has approved investments in established digital assets that meet specific criteria, including those ranked within the top 100 by market capitalization. These recent developments highlight Actelis Networks’ strategic shifts and operational changes.

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