Ondas Holdings Inc. (ONDS) just closed a billion-dollar bet on its future, and someone was willing to pay up for it. The company announced Friday that it priced a massive equity financing at a significant premium to where shares were trading, marking one of those rare moments when a capital raise actually looks like a vote of confidence.
How the Deal Breaks Down
Ondas sold 60.79 million common stock equivalents to a single institutional investor in a registered direct offering. The structure is interesting: each unit includes either a common share or a pre-funded warrant, plus two additional stock warrants on top of that.
The combined price per package came to $16.45, which works out to about 17.5% above where the stock closed on January 8. That's a meaningful premium in a world where equity offerings often get priced at a discount just to get them done. The deal is expected to close around January 12, assuming the usual closing conditions are met.
The Money Behind the Move
Ondas expects to pull in roughly $1 billion in gross proceeds before accounting for underwriting fees and transaction costs. But here's where it gets more interesting: those warrants could potentially generate up to $3.4 billion in additional funding if investors decide to exercise them for cash down the road.
Each common stock warrant carries a $28 exercise price and runs for seven years. The pre-funded warrants kick in immediately and also have a seven-year lifespan, giving the holder plenty of time to decide when to pull the trigger.