New York, Jan 24, 2026, 07:08 EST — Markets have closed.
Ondas Inc (NASDAQ: ONDS) dropped 3.5% on Friday. The decline came a day after the company submitted filings related to a possible resale of stock from its Sentry CS agreement. The shares ended the session at $12.17, with roughly 79.5 million shares traded.
Timing is crucial since resale registrations can quickly shift the supply landscape. These deals don’t bring new money into the company, but they do open the door for current holders to offload shares—something traders often see as a potential overhang.
Ondas filed a prospectus supplement on Jan. 22 registering 1,622,607 shares for resale by “selling stockholders” who got the shares through its acquisition of Sentry CS Ltd. The document detailed the payment schedule: cash-plus-stock payments in January, plus another installment due 120 days after the Nov. 17 closing. Ondas made clear any resale proceeds would go directly to the selling stockholders, not to the company.
A separate filing dated Friday revealed an $8.4 million Series B preferred stock financing at Ondas Networks, a subsidiary, completed on Jan. 16. According to the 8-K, Ondas contributed roughly $6 million, with Charles & Potomac Capital adding about $2 million. The preferred shares carry an 8% dividend when declared and can convert into Networks common stock. The deal also pushed back the maturity of a $1.5 million secured note to Dec. 31, 2027.
Equity traders see a familiar pattern: more paper possibly hitting the tape and a fresh reminder that growth at the operating units continues to rely on structured capital.
Ondas is active in autonomous systems like drones and defense-related security products, as well as private wireless networking. The company’s acquisition of Sentry CS in November adds to its growing Israeli autonomy portfolio, the prospectus says.
But the setup isn’t one-sided. Should selling stockholders rush to cash out their registered shares, it could weigh on the stock price. Plus, the leftover Sentry CS consideration involves stock components that might increase dilution, depending on Ondas’ payment choices.
As U.S. markets reopen Monday, investors will be on the lookout for follow-on filings linked to the Sentry CS purchase. They’ll also watch for any resale activity emerging in volume and spreads, particularly after the heavy turnover seen on Friday.
The upcoming earnings report, slated for around March 11 per Zacks’ calendar, is sure to draw focus on cash flow, how well recent deals are meshing, and the speed of new share issuance. (Zacks)
