Ondas Holdings Inc. Enters Into New Securities Purchase Agreement

On January 15, 2025, Ondas Holdings Inc. (NASDAQ: ONDS) made a significant move by entering into a Securities Purchase Agreement for an investment totaling $2.93 million in its subsidiary, Ondas Networks Inc. This new agreement, termed the “January Offering,” involves the sale of secured convertible promissory notes. These notes, referred to as the “January Notes,” will carry an interest rate of 10% per annum and will mature on September 30, 2025.

The January Notes are secured by all assets of Networks, with the obligation being subordinate to a certain secured note dated September 3, 2024, between Networks and the Lead Investor. Under the terms of the agreement, the Lead Investor retains the option to convert the notes into securities of Networks at the time of the closing of a Corporate Transaction or a subsequent offering of Networks’ securities.

In conjunction with the January Agreement, Networks issued warrants to the private investor group, allowing them to purchase 70,947 shares of senior preferred stock at an exercise price of $20.65 per share. These warrants are exercisable from the date of issuance through the fifth anniversary.

The issuance of these New Securities by Networks was exempt from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) and Regulation D. This exemption was based on each investor’s representation as an “accredited investor” and the absence of a distribution intent at the time of purchase.

The full details of the January Agreement, the January Notes, and the Warrants can be found in the documents attached as Exhibits to the Current Report on Form 8-K filed by Ondas Holdings Inc. These documents provide a comprehensive understanding of the terms and conditions of the agreement.

This move represents a strategic financial development for Ondas Holdings Inc. and further solidifies its position within the market. Such agreements and investments play a crucial role in shaping the company’s growth trajectory and financial stability in the long term. Investors and stakeholders will be closely monitoring the impact and outcomes stemming from this recent transaction.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ondas’s 8K filing here.

Ondas Company Profile

Ondas Holdings Inc, through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks.