TLDR
- Ondas closed a $959 million registered direct offering with 19 million shares and pre-funded warrants for 41.79 million additional shares at $16.45 per share
- The deal includes 121.58 million common stock warrants exercisable at $28 over seven years, potentially bringing in $3.4 billion more if fully exercised
- Stifel analyst Jonathan Siegmann raised his price target to a Street-high $17, rating the stock a Buy despite it trading at 175x revenues
- Stock dipped 2.6% in premarket trading to $13.56, reflecting investor concerns about dilution from the warrant structure
- Company hosts virtual investor day on January 16th to outline 2026 strategic roadmap and capital deployment plans
Ondas Holdings stock dropped following the announcement of its massive $1 billion capital raise. The stock closed at $13.56, down from the offering price of $16.45.
The registered direct offering brought in $959 million net through the sale of 19 million shares and pre-funded warrants covering another 41.79 million shares. Each share or warrant came bundled with warrants to purchase two additional shares.
This structure created 121.58 million common stock warrants that are exercisable at $28 per share over a seven-year period. If holders exercise all warrants, Ondas could receive up to $3.4 billion in additional capital, though the company cautions against assuming this will happen.
The pre-funded warrants require upfront payment for most of the purchase price, leaving only a small exercise fee. This design allows investors to avoid ownership restrictions while still providing equity capital to the company.
The capital raise follows $850 million raised in the second half of 2025. Ondas plans to use the funds for corporate development and long-term growth initiatives, including acquisitions, joint ventures, and strategic investments.
Analyst Maintains Bullish Stance
Stifel analyst Jonathan Siegmann defended the stock against critics who call it “just a hyped-up retail stock.” He pointed to the $1 billion institutional investment as proof of real confidence in the company.
Siegmann raised his price target to a Street-high $17, suggesting 27% upside from current levels. He rates the shares a Buy despite the stock trading at 175x revenues.
The analyst believes the expanded capital base positions Ondas as a credible Department of Defense supplier. It also makes the company attractive to cash-starved startups as a potential acquirer and to industry talent looking for a winner.
Siegmann thinks investors will study this capital deployment approach for years to come. He urged clients to familiarize themselves with what he calls Ondas’ differentiated operating model.
The stock has surged 500% over the past year. Wall Street analysts unanimously rate it a Strong Buy with 8 Buy ratings, though the average price target of $11.50 sits below current trading levels.
Investor Day Takes Center Stage
Ondas hosts a virtual investor day on January 16th at 10:00 a.m. EST. The event comes at a critical time as the market digests the dilution concerns from the recent capital raise.
Investors will look for specific details on the company’s 2026 financial outlook and revenue targets. Clear profitability projections are needed to justify the dilution from the warrant structure.
The company must outline its capital allocation framework. Investors want to know whether Ondas will prioritize organic research and development, strategic partnerships, or acquisitions.
Details on the IronDrone platform will be closely watched. As commercial and security drone applications expand, Ondas needs to show how it can capture market share in this growing sector.
Updates on pilot programs, commercial deployments, and integration partnerships will be important. The company must demonstrate a credible path from capital deployment to revenue generation.
Separately, Andreessen Horowitz announced a $15 billion fundraise on January 8th, with $1.2 billion earmarked for its American Dynamism strategy focused on national security and defense investments.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
