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Investing.com -- VisionWave Holdings, Inc. (NASDAQ:VWAV) stock soared 60% after the defense technology company announced it has secured a $50 million equity line through a Standby Equity Purchase Agreement (SEPA) with an institutional investor.
The agreement gives VisionWave the right to sell up to $50 million in common stock over a 24-month period at its discretion. Additionally, the investor committed to $5 million in convertible notes to support immediate scaling efforts, with the first $3 million already funded.
The defense tech firm plans to use the proceeds for working capital, product deployment, and continued innovation across its AI-powered multi-domain defense solutions, which include autonomous aerial, ground, and maritime systems.
"This funding commitment is more than just capital — it is a validation of our business model, our mission, and the extraordinary work our team has accomplished," said Noam Kenig, Chief Executive Officer of VisionWave.
The financing agreement includes protective covenants that prohibit using the funds to pay any pre-existing liabilities accrued before the company’s business combination, ensuring the capital is directed exclusively toward growth initiatives.
Douglas Davis, Chairman of VisionWave, described the financing as "the fuel" that provides the company "with the financial strength to scale operations, deliver cutting-edge technologies, and move faster than ever toward becoming a leader in intelligent defense systems."
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