NEW YORK, January 11, 2026, 05:52 EST — Market closed
- Ondas shares fell 2.3% Friday, despite the company pricing a $1 billion stock-and-warrant offering above market value.
- The deal features pre-funded warrants alongside long-dated warrants that can be exercised at $28 per share, creating a possible overhang.
- Investors are now focused on Monday’s expected closing, followed by management appearances on Jan. 14 and Jan. 16.
Ondas Holdings Inc shares slipped 2.3% to close at $13.69 on Friday after the company announced a $1 billion registered direct offering, pricing stock and warrants at $16.45 per package. That price marks roughly a 17.5% premium to the stock’s Jan. 8 closing level. The Nasdaq-listed stock traded in a range from $15.10 down to $13.59, with volume hitting about 114 million shares. (Nasdaq)
The timing is crucial. This sizable financing, loaded with optional shares, arrives right when traders are trying to separate Ondas’s story from its cash and contracts.
Investors face a stark trade-off: new capital to fuel acquisitions and growth, weighed against the risk of dilution and a warrant-heavy setup that could limit upside rallies.
Ondas announced plans to sell 19,000,000 shares along with pre-funded warrants convertible into up to 41,790,274 shares instead of common stock. Every common stock equivalent includes a warrant allowing the purchase of two additional shares, totaling 121,580,548 warrant shares, all priced at an exercise price of $28.
The company anticipates closing the offering around January 12, pending usual conditions. It aims to deploy the funds toward corporate development and strategic growth, covering acquisitions, joint ventures, and investments. Oppenheimer is the lead placement agent, supported by co-placement agents Stifel, Needham, Lake Street, Northland, Ladenburg Thalmann, H.C. Wainwright, and Maxim.
A prospectus supplement estimated net proceeds around $959 million, after deducting placement-agent fees and offering costs, not counting potential cash from warrant exercises. The filing noted the warrants likely won’t have an active trading market, and Ondas doesn’t plan to list them.
A registered direct offering involves selling securities straight to investors through an SEC-registered process, skipping the usual public roadshow. Pre-funded warrants act like a stock stand-in: investors pay nearly the full price upfront, then exercise them later for a small fee, often to keep ownership percentages in check.
Ondas revealed preliminary, unaudited financials for Sentry CS Ltd in a separate filing on Friday. The company, acquired last November, reported sales near $11.3 million for 2024 and $11.0 million in the first half of 2025. It also recorded net losses of roughly $13.5 million and $4.5 million for those periods, according to the filing.
Ondas has positioned itself as a defense-and-security tech platform following several recent deals. Chairman and CEO Eric Brock said earlier this month, “While Ondas Holdings reflected an earlier phase of our development, today, we operate as a scaled, global defense and security technology platform.” (Ondas Holdings Inc.)
The next key dates are coming fast: Ondas is set to appear at the Needham Growth Conference on Jan. 14, then it holds an OAS investor day two days later, on Jan. 16. Traders will zero in on guidance, product rollout speed, and how the company plans to allocate capital. (Ondas Holdings Inc.)
The downside risk is spelled out in the term sheet. New shares plus warrant-linked shares could dilute current holders. If the stock fails to rise above $28, those warrants might never be exercised for cash, turning a large slice of “potential” proceeds into nothing more than a paper promise.
