BOSTON – Ondas Holdings Inc. (NASDAQ:ONDS), known for its industrial wireless networks and commercial drone solutions, has announced the successful acquisition of $18.9 million in senior convertible notes, contributing to a total of $30 million in net proceeds secured since December 3rd. The company, currently valued at $221 million by market capitalization, has seen its stock surge over 346% in the past six months, according to InvestingPro data. This financial boost, primarily aimed at supporting the growth of its drone business, Ondas Autonomous Systems (OAS), comes after the company achieved its funding targets set during the OAS Investor Day on September 2024.
Eric Brock, Chairman and CEO of Ondas Holdings, expressed confidence in the company's trajectory, stating, "Ondas is entering 2025 with significant business momentum which is now supported by a robust cash position." However, InvestingPro analysis indicates some financial challenges, with the company's overall financial health score rated as weak and analysts anticipating a sales decline in the current year. InvestingPro subscribers have access to 15+ additional exclusive insights about ONDS's financial position and market outlook. He highlighted the successful capital raise from a long-standing investor, which aligns with the multi-stage capital plan unveiled previously. The funds are expected to meet the increasing global demand for the company's autonomous drone platforms, Optimus and Iron Drone, and to support operational plans to benefit customers and investors alike.
OAS, which saw $14.4 million in orders in Q3 2024, is set to utilize the proceeds for general corporate purposes. The Optimus System and Iron Drone Raider, OAS's advanced drone platforms, are poised for increased production and deployment. These AI-powered, highly automated drones are designed for critical defense, infrastructure, and government applications, with Optimus being the first FAA-certified small UAS for aerial security and data capture, and Iron Drone Raider serving as a counter-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 enhancing connectivity, situational awareness, and data processing capabilities.
The investment is seen as a strategic move to capitalize on the burgeoning demand for autonomous drone technology, with Ondas poised to update its business outlook in the first quarter of 2025. Oppenheimer & Co. Inc. served as the sole placement agent for the Offering. Further details regarding the Offering will be disclosed in the Company's upcoming Form 8-K filing.
This news is based on a press release statement. With the stock trading near its 52-week high of $3.10 and showing significant volatility, investors seeking deeper insights can access comprehensive analysis through InvestingPro's detailed research reports, which provide expert analysis on ONDS and 1,400+ other US stocks.
In other recent news, Ondas Holdings has successfully regained compliance with Nasdaq's minimum bid price requirement. This achievement ensures the company's continued listing on The Nasdaq Capital Market. The company also bolstered its financial position by issuing new convertible notes, raising $10 million, and securing an $11.5 million investment to primarily support the growth of its drone business, Ondas Autonomous Systems. Furthermore, Ondas issued $4.1 million in 3% Series B-2 Senior Convertible Notes for general corporate purposes.
Despite facing 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.
These recent developments reflect Ondas' ongoing efforts to meet financial and operational objectives. The transactions were facilitated by Oppenheimer & Co. Inc., acting as the sole placement agent in some instances. These are the latest developments in the company's operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.