ParaZero Technologies Ltd. Announces Closing of $4 Million Registered Direct Offering

Rhea-AI Summary

ParaZero (NASDAQ: PRZO) closed a registered direct offering on March 24, 2026, raising approximately $4.0 million through the sale of 5,333,333 ordinary shares and pre-funded warrants at $0.75 per share (pre-funded warrants at $0.74999).

The offering increases the company’s issued and outstanding share count to 28,760,239 assuming exercise of all pre-funded warrants; net proceeds will be used for general corporate purposes and working capital.

Positive

• Raised approximately $4.0 million in gross proceeds
• Sale included 5,333,333 ordinary shares and pre-funded warrants
• Pre-funded warrants are immediately exercisable upon issuance

Negative

• Issued shares increase to 28,760,239 assuming exercise, diluting existing holders
• Offering sold at a low price of $0.75 per share, indicating limited capital-raising terms

Key Figures

Gross offering size: $4 million Shares / warrants offered: 5,333,333 Ordinary share price: $0.75 +5 more

8 metrics

Gross offering size $4 million Aggregate gross proceeds from registered direct offering

Shares / warrants offered 5,333,333 Ordinary shares (or pre-funded warrants) sold in the offering

Ordinary share price $0.75 Public offering price per ordinary share

Pre-funded warrant price $0.74999 Public offering price per pre-funded warrant

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

Post-offering shares 28,760,239 Ordinary shares outstanding assuming full warrant exercise

Shelf form Form F-3 (No. 333-281443) Effective registration statement used for the offering

SEC effectiveness date August 16, 2024 Date Form F-3 was declared effective by the SEC

Market Reality Check

Price: $0.8700 Vol: Volume 2,443,829 is 1.56x...

high vol

$0.8700 Last Close

Volume Volume 2,443,829 is 1.56x the 20-day average, signaling elevated trading interest around the offering close. high

Technical Shares at $0.87 are trading below the 200-day MA of $1.37, reflecting a weak longer-term trend into this financing.

Peers on Argus

PRZO fell 18.69% on above-average volume while scanner peers showed mixed moves,...

1 Up 2 Down

PRZO fell 18.69% on above-average volume while scanner peers showed mixed moves, with 2 down and 1 up. Broader sector dynamics are present, but PRZO’s decline is steeper than typical peer moves.

Previous Offering Reports

4 past events · Latest: Mar 23 (Negative)

Same Type Pattern 4 events

Date	Event	Sentiment	Move	Catalyst
Mar 23	Registered direct offering	Negative	-18.7%	Stock reacted to announcement of new $4M registered direct offering.
Aug 04	Registered direct offering	Negative	+1.3%	Announced $2.2M registered direct offering at $1.10 per share.
Feb 13	Offering closing	Negative	+4.5%	Closed $3.1M registered direct offering with shares and pre-funded warrants.
Feb 12	Registered direct offering	Negative	-12.0%	Announced $3.1M registered direct offering priced at $1.10.

Pattern Detected

Offering-related headlines have produced mixed reactions, with an average move of -6.22% and both sharp selloffs and occasional upside.

Recent Company History

Over the past year, ParaZero repeatedly used registered direct offerings, including $3.1M deals in February 2025, a $2.2M offering in August 2025, and a new $4M financing announced on March 23, 2026. Price reactions around these capital raises ranged from -18.69% to +4.55%, indicating inconsistent market reception. Today’s closing announcement of the latest offering continues this pattern of frequent equity financing for general corporate purposes and working capital.

Historical Comparison

-6.2% avg move · Prior offering headlines for PRZO averaged a -6.22% move, with reactions spanning from a -18.69% dro...

offering

-6.2%

Average Historical Move offering

Prior offering headlines for PRZO averaged a -6.22% move, with reactions spanning from a -18.69% drop to modest gains, showing volatile but often negative responses to dilution.

The company has repeatedly used registered direct offerings in 2025 and 2026, raising between $2.2M and $4M per deal for general corporate purposes and working capital.

Market Pulse Summary

This announcement confirms the closing of a $4M registered direct offering at $0.75 per share, lifti...

Analysis

This announcement confirms the closing of a $4M registered direct offering at $0.75 per share, lifting total ordinary shares to 28,760,239 assuming full warrant exercise. Historically, ParaZero has relied on similar offerings for general corporate purposes and working capital, with mixed share-price reactions. Investors may track how efficiently these proceeds are deployed into growth initiatives and whether future financings remain necessary given the expanded equity base.

Key Terms

registered direct offering, pre-funded warrants, exercise price, shelf registration statement, +2 more

6 terms

registered direct offering financial

"announced the closing of its previously announced 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 at a"

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.

exercise price financial

"minus an exercise price of $0.00001 per pre-funded warrant"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

shelf registration statement regulatory

"The registered direct offering was made pursuant to an effective shelf registration statement"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

form f-3 regulatory

"shelf registration statement on Form F-3 (No. 333-281443) previously filed"

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 24, 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 the closing of its previously announced 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 sold in the offering minus an exercise price of $0.00001 per pre-funded warrant). The pre-funded warrants are 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 was decreased on a one-for-one basis.

Aggregate gross proceeds to the Company were approximately $4 million. The transaction closed on March 24, 2026. The Company intends 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 has 28,760,239 ordinary shares issued and outstanding, assuming the exercise of all pre-funded warrants issued in the offering.

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

The registered direct offering was 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 offering has been filed with the SEC and is 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 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 intended use of proceeds from the offering. 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 did ParaZero (PRZO) announce on March 24, 2026 about a securities offering?

ParaZero closed a registered direct offering raising approximately $4.0 million. According to the company, the sale comprised 5,333,333 ordinary shares and pre-funded warrants priced at $0.75 per share (pre-funded warrants at $0.74999).

How many shares will ParaZero (PRZO) have outstanding after the March 24, 2026 offering?

Assuming exercise of all pre-funded warrants, ParaZero will have 28,760,239 ordinary shares issued and outstanding. According to the company, that figure reflects the post-offering share count.

What are the key terms of the pre-funded warrants in the PRZO offering?

Pre-funded warrants were sold at $0.74999 and are immediately exercisable at a $0.00001 exercise price. According to the company, each pre-funded warrant reduced the number of ordinary shares sold on a one-for-one basis.

How does ParaZero plan to use the proceeds from the March 24, 2026 offering (PRZO)?

ParaZero intends to use net proceeds for general corporate purposes and working capital. According to the company, the offering proceeds will supplement existing cash to support operations and corporate needs.

Who served as placement agent and legal counsel for ParaZero's March 24, 2026 offering (PRZO)?

Aegis Capital Corp. acted as exclusive placement agent, with Greenberg Traurig and Gornitzky & Co. as company co-counsels. According to the company, Kaufman & Canoles acted as counsel to Aegis Capital.