NEW YORK, January 14, 2026, 08:29 (EST) — Premarket update
- ONDS shares climbed roughly 5% in premarket action following the closure of a $1 billion stock-and-warrant offering
- Company expects about $959 million in net proceeds, with upside possible if warrants are exercised
- Investors are eyeing a CEO conference appearance today and an investor day on Jan. 16 for clues on spending plans
Ondas Holdings Inc shares jumped 5.4% to $13.89 in premarket Wednesday following news that the company has completed a roughly $1 billion share-and-warrant sale to an institutional investor.
The deal is significant because it leaves a small-cap defense and industrial tech supplier with an unusually large cash reserve, just as investors demand clearer routes from product hype to actual revenue and cash flow.
The announcement reignites the immediate question for ONDS: how quickly Ondas puts the proceeds to work, and if that investment drives enough growth to counterbalance the dilution from issuing new securities.
Ondas reported selling 19 million common shares along with pre-funded warrants that allow the purchase of up to 41.79 million shares. Each “common stock equivalent” comes bundled with warrants granting the option to buy two additional shares. The company expects net proceeds around $959.2 million. The warrants have a $28 exercise price and expire in seven years. (Ondas Holdings Inc.)
A registered direct offering involves selling securities directly to an investor, with those securities already registered with the SEC, bypassing a wide public marketing effort. Pre-funded warrants function almost like shares: the buyer settles most of the cost upfront and later pays a small fee to convert them.
Ondas said it will channel the proceeds into corporate development and strategic growth, covering acquisitions, joint ventures, and investments. That hands traders fresh catalysts to factor in—and new opportunities for management to stumble.
Stifel’s Jonathan Siegmann bumped his price target for Ondas to $17 from $13, maintaining a “Buy” rating, per a GuruFocus report. (GuruFocus)
Earlier this month, Chairman and CEO Eric Brock described Ondas as more than just a drone manufacturer, stating, “today, we operate as a scaled, global defense and security technology platform.” (Ondas Holdings Inc.)
That said, the structure works against shareholders too. The share count will climb, the looming warrant stack shadows the stock, and the potential $3.4 billion from warrant exercises hinges on ONDS staying well above $28 long enough to tempt conversions.
Execution risk is another concern for investors. Acquisitions and joint ventures can quickly drain cash, and updates often come in bursts—fueling volatility but not always inspiring confidence.
Traders are set to tune in for new insights when Brock takes part in a fireside chat at the Needham Growth Conference, scheduled for 8:45 a.m. ET on Wednesday, according to the company. (Ondas Holdings Inc.)
Ondas is set to hold its virtual investor day on Jan. 16 at 10:00 a.m. ET. The company will outline its 2026 business plan and financial outlook during the session. (Ondas Holdings Inc.)
