Actelis Networks Inc. (NASDAQ:ASNS) shares plunged 47.8% on Thursday after the networking technology company disclosed the pricing of a public offering intended to raise $5 million.
The company announced the sale of 6,250,000 shares of common stock, or pre-funded warrants, together with warrants to purchase up to an additional 6,250,000 shares. Each unit, consisting of a share (or pre-funded warrant) and an accompanying warrant, was priced at $0.80, a sizable markdown compared with the stock’s previous market price.
The warrants carry an exercise price of $0.80 per share, are exercisable immediately upon issuance, and have a five-year term. H.C. Wainwright & Co. is acting as the exclusive placement agent for the transaction.
Actelis, which characterizes itself as a “market leader in cyber-hardened, rapid deployment networking solutions for IoT and broadband applications,” said it expects the offering to close around December 19, 2025, subject to customary closing conditions.
According to the company, proceeds from the offering will be used for general corporate purposes. The sharp drop in the share price suggests investors are reacting negatively to the potential dilution associated with the newly issued equity.