New York, Jan 9, 2026, 6:31 PM EST — After-hours
- Ondas priced a $1 billion registered direct offering combining shares and pre-funded warrants alongside long-dated stock warrants
- Shares fell roughly 2.3% in after-hours trading on heavy volume
- Investors are eyeing the deal closing on Jan. 12 along with company events scheduled for Jan. 14 and Jan. 16
Ondas Holdings Inc. shares dropped 2.3% to $13.69 in after-hours trading Friday, following a range between $13.61 and $15.09 on roughly 114 million shares changing hands.
The company is under pressure as it aims to secure a new cash buffer. Ondas’ offering is designed to rapidly overhaul its balance sheet, but it also brings up the immediate question traders always want answered: how much dilution is baked into the next rally.
A prospectus supplement filed with the U.S. Securities and Exchange Commission reveals Ondas plans to sell 19 million shares along with pre-funded warrants for as many as 41.79 million shares, all priced together at $16.45 per share-plus-warrant package. Each share or pre-funded warrant includes a warrant to purchase two additional shares at $28. The offering also features common warrants for up to 121.58 million shares, set to expire seven years after issuance.
A registered direct offering involves selling stock through an existing SEC registration, often to speed up the process compared to a fully marketed public deal. Pre-funded warrants come into play when a buyer wants to lock in the stock’s economic benefits now but receives the shares later; the buyer pays nearly the full price upfront, leaving only a small exercise price to convert.
Ondas projected net proceeds of roughly $959 million after fees and expenses, excluding any funds from warrant exercises, according to the filing. The company plans to use the cash for corporate development and strategic growth, including acquisitions, joint ventures, and investments. It also noted it has no intention to list the warrants and does not anticipate a trading market forming for them.
In a separate SEC filing on Friday, the company disclosed unaudited financials for Sentry CS Ltd, the Israel-based firm it bought in November. Sentry posted $11.3 million in sales for the year ended Dec. 31, 2024, alongside a net loss of $13.5 million, according to the filing.
For investors, the warrant math is crucial. Since the warrants are priced at $28, the stock must jump significantly from its current level before these instruments generate substantial cash. Meanwhile, they continue to weigh on the share count.
The deal isn’t sealed yet, and market reactions can shift quickly. If the offering misses its closing date or investors balk at the dilution versus the capital raised, expect the stock to face more sharp drops following a tumultuous week.
Ondas has back-to-back events lined up. The company will present at the Needham Growth Conference on Jan. 14 and follow up with an OAS Investor Day on Jan. 16. Meanwhile, the offering is set to close around Jan. 12, per the company’s IR calendar. (Ondas Holdings Inc.)
