Chicago, Oct. 31 – Ondas Holdings Inc. subsidiaries Ondas Networks Inc. and American Robotics, Inc. completed placement of $34.5 million of 3% convertible notes due Feb. 18, 2023, according to an 8-K filing with the Securities and Exchange Commission.
The notes came with a discount of 87, resulting in proceeds to the company of $30 million.
Oppenheimer & Co. Inc. acted as the sole placement agent for the offering. Akerman LLP served as legal counsel to Ondas, and White & Case LLP served as legal counsel to the placement agent.
The sale was conducted on a “reasonable efforts” basis.
Proceeds will be used for general corporate purposes, which include funding capital expenditures and working capital.
Potentially, if the company obtains stockholder approval of the issuances of common stock in excess of a 19.99% exchange cap, the company may exchange the notes for identical notes that will have a maturity date two years after the anniversary of such an exchange.
The company is also potentially looking at additional closings of an additional $34.5 million of 3% senior convertible notes with a two-year tenor.
Ondas is a provider of private wireless, drone and automated data solutions. The company is based in Waltham, Mass.
| Issuers: | Ondas Networks Inc. and American Robotics, Inc.
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| Amount: | $34.5 million
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| Issue: | Convertible notes
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| Maturity: | Feb. 28, 2023
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| Placement agent: | Oppenheimer & Co. Inc.
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| Counsel to issuer: | Akerman LLP
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| Counsel to agent: | White & Case LLP
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| Coupon: | 3%
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| Price: | 87
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| Change of control: | At 125
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| Settlement date: | Oct. 31
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| Stock symbol: | Nasdaq: ONDS
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| Stock price: | $3.87 on Oct. 30
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| Market capitalization: | $169.94 million
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