Parazero Technologies (PRZO) said Monday it entered into agreements with institutional investors for the purchase and sale of 2 million shares and pre-funded warrants at $1.10 per share.

The pre-funded warrants are immediately exercisable and may be exercised at any time until fully exercised, Parazero said, adding that for each pre-funded warrant sold, the number of ordinary shares will be reduced on a one-for-one basis.

The aerospace defense company said it expects gross proceeds of $2.2 million and plans to use the proceeds for general corporate purposes and working capital.

The offering is slated to close on Tuesday, subject to customary closing conditions.

ParaZero shares were down 3.2% in recent premarket activity.