WICHITA, Kan. - AgEagle Aerial Systems Inc. (NYSE American: UAVS), a prominent drone solutions provider, has announced a public offering with expected gross proceeds of approximately $6.5 million. The offering comprises 26.9 million units, each including a share of common stock or a pre-funded warrant to purchase one, along with two series of warrants to buy additional shares.
Priced at $0.24 per unit, or $0.239 for units with a pre-funded warrant, the public offering is scheduled to close on October 1, 2024, subject to customary closing conditions. The pre-funded warrants are immediately exercisable and the Series A and Series B warrants have an exercise price of $0.24 and $0.50 per share, respectively, both expiring five years post-closing.
AgEagle intends to use the proceeds for repaying an outstanding note and for general corporate and working capital purposes. Spartan Capital Securities, LLC is the sole placement agent, while Duane Morris LLP and Manatt, Phelps & Phillips LLP serve as legal counsel to AgEagle and Spartan Capital, respectively.
The offering is made under a registration statement filed and effective with the U.S. Securities and Exchange Commission (SEC) on September 30, 2024. Interested parties can obtain prospectus copies from the SEC's website or directly from Spartan Capital Securities, LLC.
Founded in 2010, AgEagle has evolved from an agriculture-focused drone company to a leading provider of integrated drone solutions across multiple industries, including energy, construction, and government sectors.
This press release contains forward-looking statements regarding the company's future plans and expected performance. These are not guarantees but are subject to risks and uncertainties that could cause actual results to differ from those projected.
The information in this article is based on a press release statement from AgEagle Aerial Systems Inc.
In other recent news, AgEagle Aerial Systems has seen significant financial and operational developments. The company issued new preferred shares and warrants to Alpha Capital Anstalt, a move that is part of its capital-raising efforts to support ongoing operations and growth. The transaction, valued at $500,000, falls under a Securities Purchase Agreement initially entered in 2022 and later amended in 2024.
AgEagle Aerial Systems also participated in a Defense UAS integration test, demonstrating their commitment to advancing unmanned aerial systems technology. The test flight event was sponsored by the Defense Innovation Unit and aimed to assess the integration of select UAS platforms with a new air traffic management system.
Furthermore, the company expanded an investment agreement with Alpha Capital Anstalt, reducing the minimum increment of investment and extending the period for additional investments. This strategic move is expected to enhance the company's financial flexibility. AgEagle Aerial Systems also held its 2024 Annual Meeting of Shareholders, resulting in the election of all five director nominees to the board and the ratification of WithumSmith+Brown, PC as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
These are recent developments in AgEagle Aerial Systems' ongoing efforts to build new customer relationships and differentiate itself in the defense and security market.
InvestingPro Insights
AgEagle Aerial Systems Inc.'s recent public offering announcement comes at a critical time for the company, as revealed by InvestingPro data and tips. The drone solutions provider's financial health appears to be under significant strain, which may explain the need for this capital raise.
According to InvestingPro data, AgEagle's market capitalization stands at a mere $1.41 million, reflecting the company's current struggles. The company's revenue for the last twelve months as of Q2 2024 was $13.69 million, with a concerning revenue growth rate of -20.85% over the same period. This decline in revenue aligns with an InvestingPro Tip indicating that the company is "quickly burning through cash."
Another InvestingPro Tip highlights that AgEagle "operates with a significant debt burden," which is particularly concerning given that the company "may have trouble making interest payments on debt." This context sheds light on why the company is seeking to raise $6.5 million through the public offering, with part of the proceeds earmarked for repaying an outstanding note.
The company's stock performance has been notably poor, with InvestingPro data showing a one-year price total return of -92.1% as of the 274th day of 2024. This aligns with an InvestingPro Tip stating that the "stock has fared poorly over the last month" and "price has fallen significantly over the last year."
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for AgEagle Aerial Systems, providing a deeper understanding of the company's financial position and market performance.
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