Ondas Holdings issues new convertible notes, raises $10 million

Published 17/12/2024, 22:58
Ondas Holdings issues new convertible notes, raises $10 million

This financial maneuver is part of Ondas Holdings' broader strategy to finance its growth initiatives and enhance its product offerings in the competitive communications equipment industry. Despite recent stock price strength, with a 91.5% return over the past week, InvestingPro analysis suggests the stock is trading above its Fair Value. The information disclosed is based on the company's filing with the Securities and Exchange Commission.

The new convertible notes, which were sold under the company's existing shelf registration statement, are due on December 17, 2026, and are convertible into shares of Ondas Holdings' common stock under certain conditions outlined in the notes. The issuance was made pursuant to an indenture with Wilmington Savings Fund Society, FSB, as trustee.

This financial maneuver is part of Ondas Holdings' broader strategy to finance its growth initiatives and enhance its product offerings in the competitive communications equipment industry. Despite recent stock price strength, with a 91.5% return over the past week, InvestingPro analysis suggests the stock is trading above its Fair Value. The information disclosed is based on the company's filing with the Securities and Exchange Commission.

The transaction was facilitated by Oppenheimer & Co. Inc., which acted as the sole placement agent according to the Placement Agent Agreement dated October 26, 2022. Legal opinions regarding the issuance and sale of the new notes were provided by Snell & Wilmer L.L.P. and Akerman LLP, confirming the legality and enforceability of the obligations under the new notes.

This financial maneuver is part of Ondas Holdings' broader strategy to finance its growth initiatives and enhance its product offerings in the competitive communications equipment industry. Despite recent stock price strength, with a 91.5% return over the past week, InvestingPro analysis suggests the stock is trading above its Fair Value. The information disclosed is based on the company's filing with the Securities and Exchange Commission.

In other recent news, Ondas Holdings Inc. has been making significant financial moves. The company secured an $11.5 million investment to primarily support the growth of its drone business, Ondas Autonomous Systems. In addition, Ondas 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.

Despite reporting a challenging Q3 2024 with revenues falling to approximately $1.5 million from $2.7 million in Q3 2023, and an operating loss of $8.7 million, Ondas 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.

The company also expanded its 2021 Stock Incentive Plan, increasing the number of shares available for issuance from 8 million to 11 million. Furthermore, Ondas has been granted 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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