BOSTON - Ondas Holdings Inc. (NASDAQ:ONDS), a provider of private industrial wireless networks and commercial drone solutions, announced an $11.5 million investment in senior convertible notes due 2026. The company, which recently secured $14.4 million in orders for Q3 2024, said Monday that the investment will primarily support the growth of its drone business, Ondas Autonomous Systems (OAS). According to InvestingPro data, the company's stock has shown strong momentum with a 78% return over the past six months, though it's currently trading near its Fair Value estimate.
The note holder, demonstrating confidence in Ondas Holdings, has the option to further invest up to an additional $18.9 million. These funds are intended for general corporate purposes, with a focus on scaling OAS operations to meet rising demand, particularly in the global defense and security markets. InvestingPro analysis reveals the company is quickly burning through cash, with a current ratio of 0.43, indicating potential challenges in meeting short-term obligations without additional funding.
Eric Brock, Chairman and CEO of Ondas Holdings, expressed gratitude for the continued investor support and outlined the company's plans to enhance its operational capabilities, including increasing inventory production. Brock highlighted the growing interest in the company's Iron Drone and Optimus platforms, which are designed to secure critical locations and populations. With a market capitalization of approximately $108 million and 16 additional key insights available on InvestingPro, investors can access comprehensive analysis through the platform's Pro Research Report.
Ondas Holdings' drone business, OAS, specializes in autonomous drone solutions, including the FAA-certified Optimus System for aerial security and data capture, and the Iron Drone Raider, a counter-drone system. The investment comes as the company prepares to meet an anticipated increase in demand in 2025, with plans to expand sales, marketing, and support activities worldwide, particularly in the US market.
Oppenheimer & Co. Inc. is acting as the placement agent for the offering. Additional details regarding the offering will be available in the Form 8-K to be filed by the company.
The company's broader offerings include Ondas Networks, which develops wireless broadband technology for mission-critical IoT applications, and its subsidiaries American Robotics and Airobotics, which have achieved significant regulatory milestones in the drone industry.
This news is based on a press release statement and provides an overview of Ondas Holdings' latest financial developments and strategic efforts to expand its drone technology business.
In other recent news, Ondas Holdings Inc. has been making strategic moves to bolster its financial situation and drive growth. The company recently issued $4.1 million in 3% Series B-2 Senior Convertible Notes, with net proceeds of approximately $3.6 million intended for general corporate purposes. This financing development comes as the company navigates liquidity challenges.
In addition, Ondas reported Q3 2024 revenues of approximately $1.5 million, a decline from $2.7 million in Q3 2023, and an operating loss of $8.7 million. Despite this, the company secured $14.4 million in orders for its military technology platforms and received a strategic order from Siemens (ETR:SIEGn) for Chicago's Metra rail system.
Ondas also expanded its 2021 Stock Incentive Plan, increasing the number of shares available for issuance from 8 million to 11 million. Furthermore, the company received a 180-day extension from Nasdaq to meet the minimum bid price requirement. These recent developments indicate Ondas' ongoing efforts to meet financial and operational objectives.
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