Ondas (ONDS) Loses 8.3% on $8.4 Million Share Sale

We recently published 10 Big Names Stumbling Hard. Ondas Inc. (NASDAQ:ONDS) was one of the worst performers on Monday.

Ondas declined for a second day on Monday, shedding as much as 8.30 percent to end at $11.16, as investors unloaded portfolios amid the potential dilution impact of the recent $8.4 million sale of convertible preferred shares.

In a regulatory filing last Friday, Ondas Inc. (NASDAQ:ONDS) said that its subsidiary, Ondas Networks Inc., entered into share purchase agreements with various lenders where they borrowed $16.5 million of cash previously, under which the latter would have the option to convert the debts into a total of 970,801 preferred shares, and further convert them into common shares.

Once exercised, the initiative would significantly help slash the group’s debt, but could also result in a potential dilution in the shares of existing common shareholders.

The filing followed Ondas Inc.’s (NASDAQ:ONDS) news earlier this month that it raised $1 billion in fresh funds from the issuance of 19 million common shares and pre-funded warrants to an institutional investor. The agreement also covers pre-funded warrants to purchase up to 41.79 million common shares.

Ondas Inc. (NASDAQ:ONDS) said that proceeds from the offer will be used for corporate development and strategic growth, including acquisitions, joint ventures, and investments.

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Disclosure: None. This article is originally published at Insider Monkey.