WICHITA, KS – AgEagle Aerial Systems Inc. (NYSE American: UAVS), a company specializing in the design and manufacture of unmanned aerial vehicles, has announced the unregistered sale of equity securities, according to a recent SEC filing.
On Monday, Alpha Capital Anstalt exercised its right to purchase 500 shares of Series F Convertible Preferred Stock, which are convertible into 1,238,237 shares of common stock, at a conversion price of $0.4038 per share. Additionally, Alpha acquired warrants to purchase up to 1,238,237 shares of common stock at the same price per share, with a three-year term.
The transaction, valued at $500,000, took place under the terms of a Securities Purchase Agreement (SPA) initially entered into on June 26, 2022, and subsequently amended in 2024.
The SPA provided Alpha with the Additional Investment Right to purchase up to $25 million in stated value of Series F Convertible Preferred and accompanying warrants, based on the volume-weighted average prices of AgEagle's common stock.
The sale of the Series F Convertible Preferred and accompanying warrants is exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and Rule 506 promulgated thereunder. This private placement is part of the company's capital-raising efforts to support its ongoing operations and growth initiatives.
AgEagle's Chief Financial Officer, Mark DiSiena, signed off on the SEC filing dated today. The filing confirms the company's commitment to expanding its financial resources to meet its strategic objectives. The issuance of preferred stock and warrants is a significant step for AgEagle as it continues to advance in the competitive aircraft manufacturing industry.
InvestingPro Insights
As AgEagle Aerial Systems Inc. (NYSE American: UAVS) works to expand its financial resources, a look at the company's current financial health via InvestingPro may offer insights into the challenges and opportunities it faces. With a market capitalization of just $4.24 million and a concerning Price / Book ratio of 0.52 as of the last twelve months ending Q2 2024, the company's valuation is relatively low. This could suggest that the market has concerns about the company's assets or future growth prospects.
InvestingPro Tips indicate that AgEagle is trading near its 52-week low and has experienced significant price volatility. The company's stock has taken a notable hit over the last week, month, and six months, with a one-month price total return of -22.77% and a six-month total return of -74.86%. These figures highlight the stock's high price volatility and the substantial challenges it faces in the market. Additionally, AgEagle does not pay a dividend, which may influence investor decisions, particularly those looking for income-generating investments.
For investors considering AgEagle's financial instruments, such as the recently issued Series F Convertible Preferred Stock and warrants, these metrics are crucial. While the company is actively raising capital to fund its operations and growth, potential investors should be aware of the financial risks involved. For a more comprehensive analysis and additional InvestingPro Tips on AgEagle, interested parties can visit InvestingPro's full profile for UAVS.
It's important to note that there are 17 additional InvestingPro Tips available for AgEagle, which could provide deeper insights into the company's financial health and stock performance.
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