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AVENTURA, Fla. - Safe Pro Group Inc. (NASDAQ:SPAI) announced Wednesday it has entered into definitive agreements for an $8 million private placement with strategic investors including Ondas Holdings Inc. (NASDAQ:ONDS) and Unusual Machines Inc. (NYSE:UMAC). According to InvestingPro data, Ondas Holdings has demonstrated remarkable market performance with a 358% return over the past year and maintains a strong balance sheet with more cash than debt.
The investment consists of 2 million shares of common stock priced at $4.00 per share, with warrants to purchase an additional 2 million shares at $6.00 per share, creating a potential total investment package of up to $20 million.
According to the press release statement, the funding aims to accelerate commercialization of Safe Pro’s AI technologies, including its Object Threat Detection (SPOTD) and Navigation Observation Detection Engine (NODE) systems. These technologies provide real-time AI analysis of drone imagery, detecting landmines and unexploded ordnance without requiring internet connectivity.
The company’s AI platform has been field-tested in Ukraine, where it reportedly delivered over 31,000 threat detections and mapped more than 7,800 hectares using over 1.7 million drone images.
Ondas Holdings enters this deal from a position of financial strength, with InvestingPro analysis showing a healthy current ratio of 2.9 and analysts projecting sales growth for the current year. "This strategic investment and relationship with Ondas Holdings and Unusual Machines validates Safe Pro’s AI technology leadership and provides the additional resources we need to rapidly scale," said Dan Erdberg, Chairman and CEO of Safe Pro Group.
The transaction is expected to close on August 20, subject to customary closing conditions. Northland Capital Markets and Dawson James Securities acted as financial advisors for the deal.
Safe Pro’s investment comes as the U.S. defense sector increases drone and AI spending, with the Senate Appropriations Committee proposing a $617 million increase in funding for small unmanned aircraft systems. For detailed analysis of defense sector companies like Ondas Holdings, including 13 additional ProTips and comprehensive financial metrics, investors can access the full research report on InvestingPro.
In other recent news, Ondas Holdings Inc. reported a significant revenue growth of 555% in the second quarter, surpassing estimates by Northland, which led the firm to raise its price target for the company to $5. In addition, Needham initiated coverage on Ondas with a Buy rating and a $5 price target, adding the company to its Conviction List, indicating strong confidence in its growth potential. Ondas also announced a definitive agreement to acquire Apeiro Motion, an Israeli robotics firm, for $12 million, which will enhance its capabilities in ground robotics and fiber optic communications. Furthermore, Ondas successfully completed a public offering, raising approximately $163 million in net proceeds, which will be used for working capital and potential strategic transactions. The company has also strengthened its advisory board by appointing Dr. Irit Idan, a defense technology expert, to the Ondas Autonomous Systems Advisory Board. Dr. Idan brings experience from her previous roles at RAFAEL Advanced Defense Systems and the SoftBank Vision Fund. These developments reflect Ondas Holdings’ strategic efforts to expand its technological capabilities and market reach.
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