Ondas Holdings, a leading provider of private industrial wireless networks and commercial drone and automated data solutions, announced today that its wholly-owned subsidiary Ondas Networks for an investment of at least $15 million in convertible preferred securities of Ondas Networks.
The planned investment provides Ondas Networks with additional working capital to accelerate production, fulfill backlog and support its growth plan.
Pursuant to the investment agreement, the C&P Group will fund an initial close of $10 million, subject to certain closing conditions. A second close of up to an additional $10 million planned in the third quarter may be taken up by a strategic investor. The C&P Group has committed to fund up to $5 million in the second closing, if the strategic investor does not participate. These convertible preferred securities are convertible into shares of common stock of Ondas Networks, and will not convert into shares of common stock of Ondas Holdings. Ondas Holdings will also issue warrants to purchase an aggregate of 10.2 million shares of common stock of Ondas Holdings – in two equal issuances at the first and second closings.
Joe Popolo, CEO of Charles & Potomac Capital
We are excited to partner with Ondas Networks as they begin to scale in the important rail markets they have secured. Our investor group has performed significant diligence and believes that Ondas Networks is poised for considerable growth as market adoption of their software defined FullMAX™ connectivity platform continues to ramp.
Eric Brock, CEO of Ondas Holdings
We are pleased to announce that C&P Group is leading an investment in our Ondas Networks subsidiary. This financing will provide valuable working capital to support the scaling of Ondas Networks, as we transition to delivering our world-class connectivity platform to Siemens and the Class I Railroads. We look forward to partnering with Joe Popolo and the C&P Group, to help build substantial value for Ondas Holdings and our Ondas Networks business unit in the coming years.
