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Ondas Stock Falls on Mistral-Related Share Resale

The drop highlights dilution risk despite new defense access from the Mistral purchase.

Overview

  • Omdat registered the resale of 2,351,833 shares tied to its Mistral acquisition, which pressured the stock according to Benzinga.
  • The merger agreement calls for $125 million in new common shares to be issued in five equal installments through May 22.
  • The company will not receive cash from the registered resales, and selling holders face a daily cap of 10% of average trading volume.
  • Jim Cramer labeled Ondas a me-too player that is still losing money, a televised critique that has weighed on sentiment.
  • The Mistral deal has closed, giving Ondas access to U.S. Army and Special Operations contract channels and lifting pro forma backlog to $457 million.