NEW YORK, July 16, 2026, 06:08 EDT
Ondas Inc. NASDAQ:ONDS saw enough volume for DZYNE’s former owners to sell the entire 40 million-share block registered post-acquisition, which could clear the stock’s overhang. There’s no filing confirming any shares traded.
Traders watched Ondas drop 4.2% to $7.05 on Wednesday, ahead of Thursday’s open, while the Nasdaq Composite added 0.6%. During the last three sessions, over 346.1 million Ondas shares changed hands, about 60.7% of its 569.8 million outstanding after new stock from the acquisition hit the market.
The July 2 agreement lets sellers unload up to around 10% of the previous day’s trading volume. That’s based on the number of shares traded. Just looking at full trading sessions since the July 6 resale filing, they could have moved 45.25 million shares by Tuesday—more than the 39,999,998 shares in the prospectus. This figure assumes the sellers pool their allowed limits to cover the entire block.
| Market session | ONDS close | Volume, mln shares | Seller ceiling for next session, mln |
|---|---|---|---|
| July 6 | $7.82 | 73.39 | 7.34 |
| July 7 | $7.35 | 60.12 | 6.01 |
| July 8 | $7.52 | 61.77 | 6.18 |
| July 9 | $7.65 | 83.19 | 8.32 |
| July 10 | $7.26 | 66.99 | 6.70 |
| July 13 | $6.96 | 107.02 | 10.70 |
| July 14 | $7.36 | 108.14 | 10.81 |
| July 15 | $7.05 | 130.95 | 13.10 |
Turnover on Wednesday set up a theoretical Thursday cap of around 13.10 million shares. If the registered block is done, that number may not matter. The prospectus notes sellers could sell any, all or none of the shares. Ondas said it doesn’t know how long holders will stay in.
The immediate block is just a piece of the total equity package. Ondas spent about $200 million in cash, plus it agreed to hand out roughly 85 million shares to buy DZYNE. The company gave 40 million shares on July 2 and plans to deliver 45 million more on January 4, 2027. This total stock payout would leave sellers holding about 13.8% of the company’s shares post-issuance.
The deferred shares come with a six-month lockup from the July 2 close. After that, half could stay locked another six months if the average price, weighted by 30-session trading volume before January 2, tops $20. That’s about 184% more than where the stock closed Wednesday.
The 85 million shares set as consideration were worth around $599 million at $7.05, about $76 million less than the $675.5 million reported value for the stock portion. The total deal comes to $875.8 million, which works out to about 4.6 times DZYNE’s projected 2026 revenue of $191 million, based on the company forecast.
Ondas CEO Eric Brock said DZYNE “significantly strengthens Ondas’ financial profile.” Highlander Partners CEO Jeff Hull, who led the selling group, said taking mainly equity made sense “because we believe in the long-term value of the combined platform.” Both are signaling alignment for the future, but the initial shares are liquid due to the resale registration. Ondas Inc.
Ondas wasn’t alone on Wednesday. Red Cat Holdings Inc. NASDAQ:RCAT dropped 6.3%, and AeroVironment Inc. NASDAQ:AVAV slipped 1.6%. But Ondas saw heavier trading than the rest.
| Company | July 15 close | Daily change | Volume |
|---|---|---|---|
| Ondas | $7.05 | -4.21% | 130.95 mln |
| Red Cat | $8.24 | -6.26% | 8.40 mln |
| AeroVironment | $141.22 | -1.57% | 1.30 mln |
Peer stocks are down too, so it’s hard to say Ondas fell just because of seller pressure. But the resale setup does mean more Ondas shares can hit the market as volume grows. That’s not how most takeover lock-ups are structured.
The overhang isn’t necessarily gone. The ceiling is based on what could be sold, not actual sales, and there’s another 45 million shares set for January. That will bump the share count up about 7.3% after the issue. Ondas also has to bring DZYNE and other recent buys into the fold while aiming for its higher 2026 revenue target of at least $525 million.
Investors aren’t just looking at volume on Thursday. They need to see if the stock can hold steady once there’s been enough room for the registered block to be taken up. If the price firms up while trading slows, that could point to the supply being dealt with. But if the stock stays weak, it’s not clear the selling is done.
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