New York, January 11, 2026, 18:31 EST — Market closed.
- Ondas shares closed Friday down 2.3% at $13.69 following a choppy session.
- The company set the price for its $1 billion stock-and-warrant deal at $16.45 per unit, aiming to close by Monday.
- Investors are focusing on deal mechanics, with management set to speak on January 14 and during the investor day on January 16.
Ondas Holdings Inc shares closed lower Friday following the announcement of a $1 billion stock and warrant offering. The deal was set at a premium to Thursday’s close, a move that could quickly dilute shares in this small-cap stock.
The terms are straightforward. Ondas is offloading 19 million shares plus pre-funded warrants for as many as 41.79 million shares. Each comes bundled with common warrants covering an additional 121.58 million shares, according to a prospectus supplement filed Friday.
The timing is crucial since the deal is set to close around January 12, flooding the market with new shares right as the company gears up for investor meetings next week. According to the same filing, Ondas had roughly 329.5 million shares outstanding as of September 30, highlighting the significant dilution risk and warrant “overhang.”
A registered direct offering means selling stock straight to a particular investor through a pre-filed registration statement, not a widely marketed deal. Pre-funded warrants act like shares but come with a small exercise price, helping control ownership limits while letting buyers get close to full stock exposure.
The financing price of $16.45 is notably higher than Friday’s $13.69 close, leaving the stock’s gap beneath the deal price front and center as trading opens. The broader markets closed up Friday, with the S&P 500 tracker SPY gaining 0.6% and the Nasdaq-100 tracker QQQ rising roughly 1.0%, marking Ondas as a clear outlier for the session.
Shares in defense-tech and drone-related firms saw varied moves. Kratos Defense climbed 9.3%, AeroVironment added 5.9%, but Red Cat fell 1.3%, all based on Friday’s closing prices.
Ondas filed an 8-K on Friday revealing summary financials for Sentry CS Ltd, the Israeli counter-drone company it acquired last November. The report showed Sentry pulled in roughly $11.3 million in sales for 2024 but posted a net loss of $13.5 million. Ondas said it plans to submit historical and pro forma financial statements as required down the line.
Two key events are lined up before markets reopen. CEO Eric Brock will speak at the Needham Growth Conference on January 14 at 8:45 a.m. ET. Then, on January 16 at 10:00 a.m. ET, the company will hold a virtual investor day.
Investors are keen to hear how Ondas intends to use about $959 million in expected net proceeds—and if acquisitions might return soon. They’ll also watch closely for clearer guidance on 2026 revenue, margins, and cash requirements to steady a stock that’s swung wildly amid lofty expectations.
The risk is clear-cut. A hefty new issuance could weigh on prices, while long-dated warrants might linger over the stock for years. The prospectus points out some warrant exercises may be cashless, so the company might not receive fresh funds. If the deal goes through amid weak demand or if holders hedge heavily, Ondas shares could plunge again quickly.
The next major event comes Monday with the anticipated closing of the financing. After that, Brock takes the stage on January 14 for a conference slot, followed by an investor day on January 16. Management has committed to unveiling an updated business plan and a 2026 outlook at that meeting.
