New York, Jan 14, 2026, 12:48 (EST) — Regular session
- Ondas shares dropped roughly 5% after the company sealed a $1 billion stock-and-warrant financing deal.
- The deal brought in roughly $959 million in net proceeds but also introduced a sizable warrant overhang
- This week saw the debut of a new 2x leveraged ETF linked to Ondas’ daily performance
Shares of Ondas Holdings Inc slipped roughly 5% on Wednesday, dragging on recent volatility following the company’s $1 billion stock-and-warrant offering. The stock dropped 5.3% to $13.16, fluctuating between $12.92 and $14.10, on volume of around 48 million shares.
Investors are fixated on the size of the raise. Ondas nets about $959 million in fresh proceeds, cash that could fuel acquisitions and growth. But the deal also balloons the potential share count with warrants that could weigh on trading for years.
The company reported selling 19 million common shares along with “pre-funded” warrants for up to 41.79 million shares to one institutional investor. Each warrant was paired with an option to buy two additional shares. These pre-funded warrants work similarly to shares, requiring most of the payment upfront, with only a small exercise price due later. (Ondas Holdings Inc.)
Ondas sold 60.79 million common stock equivalents and issued warrants for 121.58 million shares. The warrants carry a strike price of $28 per share and will remain valid for seven years, the company said. If those warrants are exercised for cash, Ondas could pull in roughly $3.4 billion more. However, the company emphasized there’s no guarantee this will occur. (Ondas Holdings Inc.)
Monday’s filing confirmed the registered direct offering has closed and included the press release as an exhibit. Registered direct offerings involve selling shares straight to investors under a registration statement already on file with the U.S. Securities and Exchange Commission.
Following the financing, Wall Street research acted fast. Stifel bumped its price target on Ondas from $13 to $17 and maintained a buy rating in a Monday note, MarketBeat reports. (MarketBeat)
Tradr ETFs rolled out a new 2x single-stock leveraged fund tied to Ondas on Tuesday. The Tradr 2X Long ONDS Daily ETF is set to debut on Cboe under the ticker ONDU. “This newest suite of funds touches on some hot button themes… namely drone technology and rare earth resources,” said Matt Markiewicz, head of product and capital markets at Tradr ETFs. (PR Newswire)
Leveraged single-stock ETFs target a multiple of a stock’s daily price change and reset every day. This setup can boost gains or losses quickly, but over time, returns often stray significantly from the stock itself, particularly when the shares fluctuate.
Ondas took center stage for investors this week. CEO Eric Brock is set for a fireside chat at the Needham Growth Conference on Wednesday morning and plans to conduct one-on-one meetings later in the day. (Ondas Holdings Inc.)
Ondas is gearing up to hold a virtual Investor Day on Jan. 16, where management will lay out an updated 2026 business plan, capital allocation strategy, and financial outlook. The event will wrap up with a Q&A session. (Ondas Holdings Inc.)
The risks remain clear. The stock faces a heavy overhang from pre-funded warrants and longer-dated common stock warrants, which could weigh on the shares if traders anticipate selling during rallies. If the price stays well under the $28 warrant strike, those touted “extra proceeds” might never materialize.
Investors are set to tune in Friday at 10:00 a.m. ET for Ondas’ Investor Day, eager for specifics on how the company intends to use its fresh capital. Market watchers will also be looking for any concrete updates from management on deal timelines, targets, or milestones set for 2026. (Ondas Holdings Inc.)
