Ondas raises US$150m for drone buildout
Ondas secured an upsized US$150m late on Tuesday from an overnight stock sale to help it fund growth through acquisitions.
After an earlier wall cross, sole bookrunner Oppenheimer & Co priced 46.2m shares at US$3.25, a stiff 24% discount to the previous closing price of US$4.29.
The drone equipment maker capitalised on better than expected second-quarter financial results that drove its shares up 25% ahead of pricing.
Strong demand enabled an increase from the US$125m targeted at launch, resulting in a 19% increase in the number of outstanding shares.
Ondas shares closed on Wednesday at US$3.52, or just above issue price.
A beneficiary of money allocated for military drones under president Trump’s "big, beautiful bill", Ondas is poised for growth.
Ondas is coming off a record quarter with US$6.3m of revenues in the second quarter, beating analyst expectations and putting it on track for US$25m of revenues this year.
The proceeds added to US$68m of cash held at the end of June, providing dry powder for a robust acquisition pipeline.
During an investor day last month, Ondas said it had identified a pipeline of 300 suitable targets, 25 of which were contacted during Q2.
Ondas has already completed two acquisitions this year with more to come.
“We believe we can execute at least two strategic acquisitions in 2025 and our visibility on the strategic pipeline is very strong,” said CEO Eric Brock during the earnings call with analysts.
Analysts at Lake Street Capital Markets think Ondas will reach management’s US$40m revenue target for 2026 and turn profitable on an adjusted Ebitda basis.
“As Ondas continues to execute on its strategic roadmap, we are confident it is on track to achieve significant revenue growth over the coming years,” wrote Lake Street analysts in their review of Ondas’ Q2 financial results.
Ondas has come through a tough period in which it came close to being delisted from the Nasdaq Capital Market.
The company raised US$46m in June from an overnight stock sale priced at US$1.25 a share, above the US$1 minimum stock price required to regain compliance. Last month, Ondas converted US$14.6m of convertible debt into common stock.