ParaZero Technologies Ltd. Announces $4 Million Registered Direct Offering

Rhea-AI Summary

ParaZero Technologies (NASDAQ: PRZO) entered a registered direct offering to sell approximately $4 million of ordinary shares and pre-funded warrants at $0.75 per share (or $0.74999 per pre-funded warrant). The offering comprises 5,333,333 shares (or pre-funded warrants) and is expected to close on or about March 24, 2026.

The pre-funded warrants are immediately exercisable and, upon closing and assumed exercise, would result in 28,760,239 ordinary shares outstanding. Net proceeds are intended for general corporate purposes and working capital. Aegis Capital is the exclusive placement agent.

Positive

• $4.0M aggregate gross proceeds expected
• Sale of 5,333,333 ordinary shares or pre-funded warrants
• Pre-funded warrants are immediately exercisable upon issuance

Negative

• Post-offering shares outstanding of 28,760,239 (assumes exercise)
• Share issuance may dilute existing shareholders' ownership percentage

News Market Reaction – PRZO

-18.69%

28 alerts

-18.69% News Effect

-22.1% Trough in 4 hr 10 min

-$5M Valuation Impact

$23M Market Cap

0.9x Rel. Volume

On the day this news was published, PRZO declined 18.69%, reflecting a significant negative market reaction. Argus tracked a trough of -22.1% from its starting point during tracking. Our momentum scanner triggered 28 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $5M from the company's valuation, bringing the market cap to $23M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Offering size: $4 million Offering price: $0.75 per share Shares offered: 5,333,333 shares +5 more

8 metrics

Offering size $4 million Registered direct offering gross proceeds

Offering price $0.75 per share Price per ordinary share in the offering

Shares offered 5,333,333 shares Ordinary shares or pre-funded warrants sold

Warrant price $0.74999 Price per pre-funded warrant

Warrant exercise price $0.00001 Exercise price per pre-funded warrant

Gross proceeds $4 million Aggregate gross proceeds expected

Expected closing date March 24, 2026 Anticipated transaction closing date

Post-offering shares 28,760,239 shares Issued and outstanding after full warrant exercise

Market Reality Check

Price: $0.8700 Vol: Volume 895,096 vs 20-day ...

low vol

$0.8700 Last Close

Volume Volume 895,096 vs 20-day average 1,464,066 (relative volume 0.61x), indicating subdued trading ahead of the deal. low

Technical Price 1.07 is trading below the 200-day MA at 1.37, reflecting a weak pre-offering trend.

Peers on Argus

PRZO was down 6.14% while the momentum scanner showed only one peer (GPUS) also ...

1 Down

PRZO was down 6.14% while the momentum scanner showed only one peer (GPUS) also moving down, suggesting a stock-specific move rather than a broad Aerospace & Defense shift.

Previous Offering Reports

3 past events · Latest: Aug 04 (Negative)

Same Type Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Aug 04	Registered direct offering	Negative	+1.3%	$2.2M registered direct offering at $1.10 per share to investors.
Feb 13	Offering closing	Negative	+4.5%	Closing of $3.1M registered direct offering of shares and pre-funded warrants.
Feb 12	Registered direct offering	Negative	-12.0%	$3.1M registered direct offering of ordinary shares and pre-funded warrants.

Pattern Detected

Past registered direct offerings showed mixed reactions, with two positive and one sharply negative next-day move, indicating inconsistent market responses to dilution news.

Recent Company History

Historically, ParaZero’s capital raises via registered direct offerings have been relatively small, ranging from $2.2M to $3.1M, typically involving ordinary shares and pre-funded warrants priced at $1.10. These offerings were aimed at general corporate purposes and working capital, similar to the current $4M deal. Price reactions have been inconsistent, with moves from -12% to +4.55%, underscoring that sentiment around dilution has varied from event to event.

Historical Comparison

-2.1% avg move · In the past, PRZO reported 3 registered direct offerings tagged as ‘offering’, with an average next-...

offering

-2.1%

Average Historical Move offering

In the past, PRZO reported 3 registered direct offerings tagged as ‘offering’, with an average next-day move of -2.06%, showing generally modest pressure around dilution events.

The company has repeatedly used registered direct offerings with shares and pre-funded warrants, scaling from $2.2M and $3.1M raises to the current $4M financing for general corporate purposes and working capital.

Market Pulse Summary

The stock dropped -18.7% in the session following this news. A negative reaction to this financing w...

Analysis

The stock dropped -18.7% in the session following this news. A negative reaction to this financing would be consistent with concerns about dilution from the $4 million registered direct offering at $0.75 per share. Historically, offering headlines for PRZO have averaged a modest -2.06% move, with at least one event seeing a -12% decline, showing that investors sometimes discounted shares more aggressively. Pressure could persist as the market digests the higher share count of 28,760,239 following full exercise of pre-funded warrants.

Key Terms

registered direct offering, pre-funded warrants, form f-3, prospectus supplement

4 terms

registered direct offering financial

"entered into a definitive agreement in a registered direct offering with a single..."

A registered direct offering is a way for a company to sell new shares of its stock directly to select investors with regulatory approval. This method allows the company to raise funds quickly and efficiently without needing a public auction, similar to offering exclusive access to a limited number of buyers. For investors, it often provides an opportunity to purchase shares at a favorable price, while giving the company immediate access to capital.

pre-funded warrants financial

"purchase and sale of approximately $4 million of ordinary shares and pre-funded warrants..."

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

form f-3 regulatory

"pursuant to an effective shelf registration statement on Form F-3 (No. 333-281443)..."

Form F-3 is a U.S. securities filing that lets eligible foreign companies pre-register and then quickly sell shares or other securities to raise money, because they already meet ongoing reporting and size tests. For investors it signals that the company is up-to-date with regulatory disclosure and has an efficient way to issue new securities — similar to a pre-approved credit line — which can mean faster capital raises but also potential dilution of existing holdings.

prospectus supplement regulatory

"A final prospectus supplement and accompanying prospectus describing the terms..."

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

AI-generated analysis. Not financial advice.

TEL AVIV, ISRAEL, March 23, 2026 (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 a definitive agreement in a registered direct offering with a single institutional investor for the purchase and sale of approximately $4 million of ordinary shares and pre-funded warrants at a price of $0.75 per ordinary share.

The offering consisted of the sale of 5,333,333 ordinary shares (or pre-funded warrants) at a public offering price of $0.75 per ordinary share (or $0.74999 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 $4 million. The transaction is expected to close on or about March 24, 2026, 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. Following completion of the offering, the Company will have 28,760,239 ordinary shares issued and outstanding, assuming the exercise of all pre-funded warrant issued in the offering.

Aegis Capital Corp. is acting as exclusive placement agent for the offering. Greenberg Traurig, P.A. and Gornitzky & Co. are acting as co-counsels to the Company. Kaufman & Canoles, P.C. is acting as counsel to Aegis Capital Corp.

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. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010.

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

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 and in subsequent filings with the SEC. 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 ParaZero (PRZO) raising in the March 23, 2026 registered direct offering?

ParaZero is raising approximately $4 million through a registered direct offering of shares and pre-funded warrants. According to the company, the offering consists of 5,333,333 ordinary shares (or pre-funded warrants) at $0.75 per share.

How many shares will ParaZero (PRZO) have outstanding after the offering closes?

Assuming exercise of all pre-funded warrants, ParaZero would have 28,760,239 ordinary shares outstanding. According to the company, that figure reflects the expected post-closing share count if all warrants are exercised.

When is the ParaZero (PRZO) registered direct offering expected to close?

The offering is expected to close on or about March 24, 2026, subject to customary closing conditions. According to the company, closing timing depends on satisfaction of those customary conditions.

What are the terms of the pre-funded warrants in ParaZero's (PRZO) offering?

Each pre-funded warrant is priced at $0.74999 and is immediately exercisable with a $0.00001 exercise price. According to the company, pre-funded warrants reduce the number of ordinary shares sold on a one-for-one basis.

How will ParaZero (PRZO) use the net proceeds from the $4 million offering?

ParaZero intends to use net proceeds for general corporate purposes and working capital. According to the company, the proceeds together with existing cash will support operational needs and corporate expenses.