AgEagle Aerial Systems secures funding agreement

WICHITA, KS – AgEagle Aerial Systems Inc. (NYSE American: UAVS), a micro-cap company with a market value of $11.23 million specializing in the manufacture of unmanned aerial vehicles, announced on Monday a new funding agreement with investment firm Alpha Capital Anstalt, according to a recent SEC filing.

According to InvestingPro data, the company currently operates with a significant debt burden and shows weak overall financial health. The agreement, dated February 7, 2025, stipulates that Alpha will exercise its right to invest an additional $1,000,000 in AgEagle’s Series F Convertible Preferred Stock.

Under the terms of the agreement, Alpha has also committed to providing quarterly financing for the next twelve months, with specific amounts and funding schedules to be mutually agreed upon. This funding comes at a crucial time, as InvestingPro analysis shows the company is quickly burning through cash, with a concerning current ratio of 0.66, indicating potential liquidity challenges.

In exchange for Alpha’s financial commitment, AgEagle has extended the deadline for Alpha to exercise its additional investment right from December 31, 2025, to June 1, 2026, and has agreed to grant Alpha registration rights for the Series F Convertible Preferred Stock.

AgEagle has committed to using its best efforts to register 5,500,000 shares of common stock that underlie the Series F Convertible Preferred Stock. This move is designed to facilitate the conversion of the preferred shares into common shares in the future.

Additionally, Alpha exercised its Additional Investment Right on February 7, 2025, by purchasing 1,000 shares of Series F Convertible Preferred Stock, which are convertible into 450,390 common shares at a conversion price of $2.2203 per share. Alongside this, Alpha obtained warrants to purchase up to 450,390 shares of common stock at the same exercise price. The warrants are immediately exercisable upon issuance and have a three-year term.

The sale of the Series F Convertible Preferred Stock and warrants to Alpha is being conducted in accordance with Section 4(a)(2) of the Securities Act of 1933 and Rule 506 promulgated thereunder, which allows for the sale of securities without registration under certain conditions.

This funding agreement is a strategic move for AgEagle as it seeks to secure financial support for its operations and growth initiatives. The company’s engagement with Alpha reflects a continued relationship between the two entities, with Alpha providing not only capital but also a vote of confidence in AgEagle’s business prospects.

Investors and market observers will be watching closely to see how this influx of capital will affect AgEagle’s future developments and market position within the aircraft manufacturing industry. The information is based on a press release statement.

In other recent news, AgEagle Aerial Systems has been making significant strides in its operations.

The company’s eBee VISION Intelligence, Safety and Reconnaissance (ISR) Unmanned Aerial System (UAS) recently underwent testing by the U.S. Department of Defense, marking a notable advancement in the company’s efforts to penetrate the defense sector.

On the revenue front, AgEagle completed a record $3.4 million order for the French Army, the largest sale in the company’s history. The order included the eBee VISION systems, which are designed for ISR applications.

In addition, the company announced a significant increase in its authorized common stock from 5 million to 200 million shares, following a special meeting of shareholders. This move could potentially pave the way for future growth initiatives.

AgEagle also secured a record order of 60 RedEdge-P Multispectral Sensors from an East Asian value-added reseller, marking the largest single sensor order in the company’s history.

Lastly, the company completed the sale and delivery of three eBee VISION drones to the Danish Ministry of Defence Acquisition and Logistics Organisation, further establishing AgEagle’s presence in the military and defense sectors.

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