Ondas Holdings Inc. (ONDS) saw its stock price plummet 10.89% in pre-market trading on Tuesday, following the announcement of a significant stock offering. The company has priced an underwritten offering of 40 million shares at $5.00 per share, aiming to raise $200 million in gross proceeds.

The offering, which represents a substantial dilution for existing shareholders, is expected to close on September 10, 2025, subject to customary closing conditions. Ondas Holdings has also granted the underwriters a 30-day option to purchase up to an additional 6 million shares, potentially increasing the size of the offering.

According to the company, the net proceeds from this offering will be used for corporate development and strategic growth initiatives, including potential acquisitions and investments. While this move may strengthen Ondas Holdings' financial position and support its growth plans, the immediate market reaction reflects concerns over share dilution and its impact on stock value.

The offering is being managed by Oppenheimer & Co. Inc. as the lead book-running manager, with Stifel acting as the joint book-running manager. Investors will be closely watching how Ondas Holdings utilizes these funds and whether the strategic investments will offset the dilutive effect of the offering in the long term.