Ondas Holdings Inc. ( ONDS ) shares slipped on Tuesday after the company said it priced an underwritten public offering of 40 million shares at $5 each, aiming to raise $200 million in gross proceeds before expenses.

The underwriters also received a 30-day option to buy up to six million additional shares, with the deal expected to close around Sept. 10. Investors sent the stock lower on concerns about dilution from the capital raise. Oppenheimer & Co. is serving as lead bookrunner, joined by Stifel and other co-managers.

Last week, the company introduced Ondas Capital, a new unit focused on unmanned aerial systems, robotics, advanced simulation, and AI-driven defense platforms. Ondas ( ONDS ) plans to deploy at least $150 million over the next two years, concentrating first on Eastern Europe, with Ukraine as a priority, while strengthening connections with U.S. and European defense markets.

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James Acuna, a veteran of CIA field operations and founder of defense technology ventures in Estonia, will lead the program. Acuna is scheduled to outline the initiative at the Defense and Security Equipment International exhibition in London on Sept. 11.

Ondas ( ONDS ) said it will establish a European headquarters in Estonia, Ukraine, and the United Kingdom. The facility will operate under a professional governance model, with oversight from leaders in both the public and private sectors. CEO Eric Brock said the structure is designed to accelerate the deployment of critical technologies while maintaining transparency and alignment with stakeholders.

In late August, Ondas ( ONDS ) announced that a 51% stake in Israel-based S.P.O Smart Precision Optics would be acquired. The company, known for manufacturing advanced optical components for defense and security systems, was described by CEO Eric Brock as key to strengthening Ondas' ( ONDS ) defense technology portfolio. He said the expertise of SPO in precision optics is expected to enhance the company's support for missile defense and counter-drone operations worldwide. Terms of the agreement were not disclosed.

Price Action: ONDS shares are trading lower by 10.89% to $5.400 at last check Tuesday.

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