Ondas Holdings Secures $10M Loan Facility
Ticker: ONDS · Form: 8-K · Filed: Oct 15, 2024 · CIK: 1646188
Sentiment: neutral
Topics: debt-financing, loan-agreement, material-definitive-agreement
TL;DR
Ondas just got a $10M loan from Pritzker Org affiliate, due 2027.
AI Summary
On October 10, 2024, Ondas Holdings Inc. entered into a material definitive agreement, specifically a loan agreement with an affiliate of The Pritzker Organization, LLC. This agreement provides Ondas with a $10 million senior secured term loan facility. The loan matures on October 10, 2027, and carries an interest rate of 12% per annum.
Why It Matters
This new financing provides Ondas Holdings with crucial capital, potentially enabling them to fund operations, pursue growth initiatives, or manage existing obligations.
Risk Assessment
Risk Level: medium — The company is taking on new debt, which increases financial leverage and repayment obligations.
Key Numbers
- $10.0M — Loan Facility (Amount of senior secured term loan provided by an affiliate of The Pritzker Organization, LLC.)
- 12% — Interest Rate (Annual interest rate on the new loan facility.)
- 3 years — Maturity (The loan facility matures on October 10, 2027.)
Key Players & Entities
- Ondas Holdings Inc. (company) — Registrant
- The Pritzker Organization, LLC (company) — Affiliate providing loan
- $10 million (dollar_amount) — Senior secured term loan facility amount
- October 10, 2024 (date) — Date of agreement
- October 10, 2027 (date) — Loan maturity date
FAQ
What is the purpose of the $10 million loan facility?
The filing does not explicitly state the purpose of the loan, but it provides Ondas Holdings Inc. with capital for its operations or other business needs.
Who is the lender providing the $10 million loan?
The loan is provided by an affiliate of The Pritzker Organization, LLC.
When is the loan facility due to mature?
The senior secured term loan facility matures on October 10, 2027.
What is the interest rate on the new loan?
The interest rate on the $10 million senior secured term loan facility is 12% per annum.
What type of loan is this for Ondas Holdings Inc.?
This is a $10 million senior secured term loan facility.
Filing Stats: 717 words · 3 min read · ~2 pages · Grade level 9.7 · Accepted 2024-10-15 16:42:13
Key Financial Figures
- $0.0001 — ich registered Common Stock par value $0.0001 ONDS The Nasdaq Stock Market LLC I
- $3.5 million — ement"), for an aggregate investment of $3.5 million in OAS (the "Offering"). The Agreement
Filing Documents
- ea0217498-8k_ondas.htm (8-K) — 28KB
- ea021749801ex10-1_ondas.htm (EX-10.1) — 227KB
- ea021749801ex99-1_ondas.htm (EX-99.1) — 13KB
- 0001213900-24-087830.txt ( ) — 498KB
- onds-20241010.xsd (EX-101.SCH) — 3KB
- onds-20241010_lab.xml (EX-101.LAB) — 33KB
- onds-20241010_pre.xml (EX-101.PRE) — 22KB
- ea0217498-8k_ondas_htm.xml (XML) — 4KB
01 Entry into a Material Definitive
Item 1.01 Entry into a Material Definitive Agreement. The disclosure included in Item 2.03 of this Current Report on Form 8-K is incorporated herein by reference.
03 Creation of a Direct Financial
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On October 10, 2024, Ondas Autonomous Systems Inc. ("OAS"), a subsidiary of Ondas Holdings Inc. (the "Company"), entered into that certain Securities Purchase Agreement (the "Agreement"), for an aggregate investment of $3.5 million in OAS (the "Offering"). The Agreement was entered into by and among OAS and a private investor group, including (i) Privet Ventures LLC, an entity affiliated with Eric Brock, Chairman and Chief Executive Officer of the Company and OAS, and (ii) Charles & Potomac Capital, LLC, an entity affiliated with Joseph Popolo, a Board Member of the Company, for the sale of convertible promissory notes in the aggregate amount of $3.5 million (the "Notes"). The Notes will (i) bear an interest rate of 5% per annum, (ii) have a maturity date of September 30, 2025, and (iii) be convertible into securities of OAS under certain conditions. The Offering will be funded in October 2024. The foregoing summary of the terms of the Agreement and the Notes do not purport to be complete and are subject to, and qualified in its entirety by, such documents attached as Exhibits 10.1 and 10.2 to this Current Report on Form 8-K, which are incorporated herein by reference.
01. Other Events
Item 8.01. Other Events. On October 14, 2024, the Company issued a press release announcing the Offering. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
01. Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1* Form of Securities Purchase Agreement. 10.2 Form of Convertible Promissory Note (see Exhibit A to the Securities Purchase Agreement filed as Exhibit 10.1 to this Current Report on Form 8-K). 99.1 Press Release, dated October 14, 2024 . 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). * Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The registrant hereby undertakes to furnish copies of any of the omitted schedules upon request by the SEC. 1
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 15, 2024 ONDAS HOLDINGS INC. By: /s/ Eric A. Brock Eric A. Brock Chief Executive Officer 2