BOSTON – Ondas Holdings Inc. (NASDAQ:ONDS), known for its industrial wireless networks and commercial drone solutions, announced the successful acquisition of senior convertible notes valued at $18.9 million, contributing to a total of $30 million in net proceeds secured as of December 3. The company, whose market capitalization is currently estimated at $221 million, has seen its stock rise over 346% over the past six months, according to InvestingPro data. This financial increase, primarily aimed at supporting the growth of the drone business, Ondas Autonomous Systems (OAS), comes after the company reached its funding targets set during the OAS Investor Day in September 2024.
Eric Brock, president and chief executive officer of Ondas Holdings, expressed confidence in the company’s trajectory, saying, “Ondas enters 2025 with significant business momentum now supported by a strong cash position.” However, InvestingPro the analysis points to some financial challenges, with the company’s overall financial health rating assessed as weak, and analysts predicting a decline in sales in the current year. InvestingPro subscribers have access to 15+ additional exclusive insights on the financial position and outlook of the ONDS market. He highlighted the successful capital increase by a long-time investor, which is in line with the multi-phase capital plan presented earlier. The funding is expected to meet growing global demand for the company’s autonomous drone platforms, Optimus and Iron Drone, and support operational plans that will benefit both clients and investors.
OAS, which recorded $14.4 million in orders in the third quarter of 2024, intends to use the proceeds for general corporate purposes. The Optimus System and Iron Drone Raider, OAS’ advanced unmanned aerial vehicle platforms, are poised for increased production and deployment. These highly automated AI-powered drones are designed for critical defense, infrastructure and government applications, with the Optimus being the first small UAS certified by the FAA for air safety and data collection, and the Iron Drone Raider serving as an anti-drone system.
Ondas Networks, a subsidiary of Ondas Holdings, provides private wireless data solutions, while American Robotics and Airobotics, operating under OAS, offer commercial drone solutions. Together, these entities serve defense, homeland security, public safety and other critical markets by improving connectivity, situational awareness and data processing capabilities.
The investment is seen as a strategic move to capitalize on growing demand for autonomous drone technology, and Ondas is set to update its business outlook in the first quarter of 2025. Oppenheimer & Co. Inch. served as sole placement agent for the offering. Further details regarding the Offer will be disclosed in the Company’s upcoming filing on Form 8-K.
This news is based on a press release. With the stock trading near its 52-week high of $3.10 and showing significant volatility, investors looking for deeper insights can access comprehensive analysis via InvestingProin-depth research reports providing expert analysis of ONDS and over 1,400 other US stocks.
In other recent news, Ondas Holdings successfully regained compliance with Nasdaq’s minimum bid price requirement. This achievement ensures the continued listing of the company on the Nasdaq capital market. The company also strengthened its financial position by issuing new convertible notes, raising $10 million and securing an investment of $11.5 million primarily to 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 for general corporate purposes.
Despite facing a challenging third quarter 2024 with revenue falling to approximately $1.5 million from $2.7 million in third quarter 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:) 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.
These recent developments reflect Ondas’ ongoing efforts to meet financial and operational targets. The transactions were facilitated by Oppenheimer & Co. Inc., acting as sole placement agent in some cases. These are the latest achievements in the company’s operations.
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