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TEL AVIV - ParaZero Technologies Ltd. (NASDAQ: PRZO), an aerospace company specializing in safety systems for commercial unmanned aircraft and defense Counter UAS systems, has announced the sale of approximately $3.1 million of ordinary shares and pre-funded warrants in a registered direct offering to institutional investors. The sale price was set at $1.10 per ordinary share and $1.09999 per pre-funded warrant, with the latter being immediately exercisable and remaining so until fully exercised. According to InvestingPro data, the company currently has a market capitalization of $16.74 million and maintains a strong liquidity position with more cash than debt on its balance sheet.
The transaction, which involved the sale of 2,818,182 ordinary shares or corresponding pre-funded warrants, is expected to close on or about Thursday, February 13, 2025, pending the satisfaction of customary closing conditions. ParaZero anticipates using the net proceeds from this offering, in conjunction with its existing cash, for general corporate purposes and working capital. InvestingPro analysis indicates the company has been quickly burning through cash, with a current ratio of 5.19, suggesting strong short-term liquidity despite operational challenges. Get access to 12 more exclusive ProTips and detailed financial metrics with an InvestingPro subscription.
Aegis Capital Corp. has been named the exclusive placement agent for the offering, while Greenberg Traurig, P.A. and Gornitzky & Co. are serving as co-counsels to ParaZero. Kaufman & Canoles, P.C. is representing Aegis Capital Corp. as counsel.
This offering is being conducted under an effective shelf registration statement on Form F-3, filed with the U.S. Securities and Exchange Commission (SEC) and declared effective on August 16, 2024. The terms of the proposed offering will be detailed in a final prospectus supplement and accompanying prospectus, to be filed with the SEC and available on their website.
ParaZero, established in 2014 by aviation professionals and drone industry veterans, is a leader in the development of autonomous parachute safety systems for commercial, military, and urban air mobility (UAM) aircraft. These systems are designed to enable safe flight operations in populated areas and beyond visual line of sight (BVLOS), as well as for military applications. Financial metrics from InvestingPro show the company generated revenue of $0.56 million in the last twelve months, with a gross profit margin of 11.88%, reflecting the early-stage nature of its operations in this growing market.
The information provided in this article is based on a press release statement from ParaZero Technologies Ltd.
In other recent news, ParaZero Technologies Ltd. has achieved several significant milestones in its drone safety systems. The company’s SafeAir systems have met CE Class C5 compliance, a critical certification for operating drones under European Union Aviation Safety Agency regulations. This certification enables ParaZero’s SafeAir systems to fly in densely populated areas under Standard Scenario STS-01 without extensive documentation or lengthy approval processes.
ParaZero also introduced the SafeAir Raptor, a new safety system for commercial drones designed to be compatible with Anzu Robotics’ Raptor and Raptor T drone models. The SafeAir Raptor provides autonomous monitoring and real-time failure detection, meeting ASTM F3322-22 standards and FAA regulations for operations over people.
Furthermore, the company’s HALO Precision Airdrop System received approval from the Israeli Defense Export Controls Agency for marketing. The HALO system utilizes ParaZero’s parachute technology to enhance drone-based logistical support for military forces and emergency responders. The company has successfully tested this system, demonstrating its ability to safely deliver sensitive supplies under challenging conditions.
These recent developments underscore ParaZero’s commitment to enhancing drone safety and regulatory compliance. As the company continues to innovate in the field of drone safety, these advancements mark significant steps in its product offerings and potential business avenues.
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