ParaZero Technologies Ltd. Announces $2.2 Million Registered Direct Offering

Rhea-AI Summary

ParaZero Technologies (NASDAQ: PRZO), an aerospace defense company focused on autonomous solutions for manned and unmanned aerial systems, has announced a $2.2 million registered direct offering with institutional investors.

The offering consists of 2,000,001 ordinary shares (or pre-funded warrants) priced at $1.10 per share. The pre-funded warrants are priced at $1.09999 with an exercise price of $0.00001. The transaction is expected to close around August 5, 2025. The company plans to use the proceeds for general corporate purposes and working capital.

Positive

• Secured $2.2 million in additional funding through institutional investors
• Immediate access to capital through pre-funded warrants structure

Negative

• Potential dilution for existing shareholders
• Offering price of $1.10 per share may impact stock value

TEL AVIV, ISRAEL, Aug. 04, 2025 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (NASDAQ: PRZO) (the “Company”), an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry, today announced that it has entered into definitive agreements in a registered direct offering with institutional investors for the purchase and sale of approximately $2.2 million of ordinary shares and pre-funded warrants at a price of $1.10 per ordinary share.

The offering consisted of the sale of 2,000,001 ordinary shares (or pre-funded warrants) at a public offering price of $1.10 per ordinary share (or $1.09999 for each pre-funded warrant, which is equal to the public offering price per ordinary share to be sold in the offering minus an exercise price of $0.00001 per pre-funded warrant). The pre-funded warrants will be immediately exercisable and may be exercised at any time until exercised in full. For each pre-funded warrant sold in the offering, the number of ordinary shares in the offering will be decreased on a one-for-one basis.

Aggregate gross proceeds to the Company are expected to be approximately $2.2 million. The transaction is expected to close on or about August 5, 2025, subject to the satisfaction of customary closing conditions. The Company expects to use the net proceeds from the offering, together with its existing cash, for general corporate purposes and working capital.

Greenberg Traurig, P.A. and Gornitzky & Co. are acting as co-counsels to the Company. Aegis Capital Corp. is serving as financial advisor in the offering.

The registered direct offering is being made pursuant to an effective shelf registration statement on Form F-3 (No. 333-281443) previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on August 16, 2024. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov.

Interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About ParaZero Technologies Ltd.

ParaZero Technologies Ltd. (Nasdaq: PRZO) is an aerospace defense company pioneering smart, autonomous solutions for the global manned and unmanned aerial systems (UAS) industry. Founded in 2014 by aviation professionals and drone industry veterans, ParaZero is a recognized leader in advanced drone technologies, supporting commercial, industrial, and governmental operations worldwide. The company’s product portfolio includes SafeAir, an autonomous parachute recovery system designed for aerial safety and regulatory compliance; DefendAir, a counter-UAS net-launching platform for protection against hostile drones in both battlefield and urban environments; and DropAir, a precision aerial delivery system. ParaZero’s mission is to redefine the boundaries of aerial operations with intelligent, mission-ready systems that enhance safety, scalability, and security. For more information, visit https://parazero.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act and other securities laws. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, the Company is using forward-looking statements when it discusses the timing and completion of the offering, the satisfaction of customary closing conditions related to the offering and the intended use of proceeds therefrom. Forward-looking statements are not historical facts, and are based upon management’s current expectations, beliefs and projections, many of which, by their nature, are inherently uncertain. Such expectations, beliefs and projections are expressed in good faith. However, there can be no assurance that management’s expectations, beliefs and projections will be achieved, and actual results may differ materially from what is expressed in or indicated by the forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the forward-looking statements. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s Annual Report on Form 20-F filed with the SEC on March 21, 2025. Forward-looking statements speak only as of the date the statements are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events or circumstances, changes in assumptions or changes in other factors affecting forward-looking information except to the extent required by applicable securities laws. If the Company does update one or more forward-looking statements, no inference should be drawn that the Company will make additional updates with respect thereto or with respect to other forward-looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. ParaZero is not responsible for the content of third-party websites.

Michal Efraty
Investor Relations
michal@efraty.com

FAQ

What is the size and price of ParaZero's (PRZO) August 2025 offering?

ParaZero announced a $2.2 million registered direct offering with institutional investors, consisting of 2,000,001 ordinary shares or pre-funded warrants at $1.10 per share.

How will ParaZero (PRZO) use the proceeds from the $2.2M offering?

ParaZero plans to use the net proceeds from the offering, together with existing cash, for general corporate purposes and working capital.

When will ParaZero's (PRZO) registered direct offering close?

The offering is expected to close on or about August 5, 2025, subject to customary closing conditions.

What is the structure of ParaZero's (PRZO) pre-funded warrants?

The pre-funded warrants are priced at $1.09999 with an exercise price of $0.00001, and can be exercised immediately until exercised in full.

Who are the advisors for ParaZero's (PRZO) registered direct offering?

Aegis Capital Corp is serving as financial advisor, while Greenberg Traurig, P.A. and Gornitzky & Co are acting as co-counsels to the company.