Shares of Ondas Holdings Inc. (ONDS) fell sharply during intraday trading, dropping 5.04% amid investor concerns over potential dilution.

The decline follows the company's filing of a prospectus supplement covering the resale of 2,535,496 shares of common stock by certain stockholders. These shares were previously issued in an unregistered transaction exempt under Regulation D and are related to the acquisition of Mistral, which was disclosed on April 24, 2026.

The registration of these previously unregistered shares for resale typically increases the available supply of stock in the market, which can create selling pressure and dilute existing shareholders' stakes, often leading to negative price movements.