Ondas Holdings Inc. (NASDAQ: ONDS) shares dropped after pricing an underwritten public offering of 40 million shares at $5 each to raise $200 million in gross proceeds before expenses. The deal includes a 30-day option for underwriters to purchase up to six million additional shares, with the transaction expected to close around Sept. 10.

The company recently introduced Ondas Capital, a new unit focusing on unmanned aerial systems, robotics, advanced simulation, and AI-driven defense platforms. Ondas plans to deploy at least $150 million over the next two years, starting in Eastern Europe, with Ukraine as a priority, while strengthening connections with U.S. and European defense markets.

James Acuna, a veteran of CIA field operations, will lead Ondas Capital, outlining the program at a defense exhibition in London on Sept. 11. Ondas will establish European headquarters in Estonia, Ukraine, and the UK, operating under a professional governance model for transparency and alignment with stakeholders.

In late August, Ondas announced the acquisition of a 51% stake in Israel-based S.P.O Smart Precision Optics, known for manufacturing advanced optical components for defense and security systems. CEO Eric Brock sees this as key to enhancing Ondas’ defense technology portfolio, supporting missile defense and counter-drone operations worldwide.

ONDS shares are trading down 10.89% to $5.400 at last check. Explore unique insights from Benzinga Edge for a competitive edge in today’s market.

Read more at Yahoo Finance: What’s Going On With Ondas Holdings Stock Tuesday?