Unusual Machines, Inc. (AMEX:UMAC) saw its stock price tumble 18% on Monday after announcing a registered direct offering valued at $48.5 million, priced well below its recent market closing value.
The deal involves selling 5 million common shares (or pre-funded warrants) at $9.70 each, a notable discount compared to Friday’s closing price of $12.12. This significant price difference contributed to the steep decline in the company’s stock.
Dominari Securities LLC is acting as the sole placement agent for the offering, which is anticipated to finalize around July 15, 2025, pending standard closing requirements.
Unusual Machines, which identifies itself as a leader in drone technology and parts manufacturing, intends to deploy the raised funds towards expanding its U.S.-based manufacturing facilities, addressing working capital needs, and supporting general corporate activities.
The shares are being issued under an existing shelf registration statement previously filed with the SEC. A detailed prospectus supplement outlining the terms of the offering will be submitted to the SEC and accessible on its website.
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