Unusual Machines, Inc. Announces Closing in which it Sold $40 Million in a Public Offering of Common Stock

Rhea-AI Summary

Unusual Machines (UMAC) has successfully completed a public offering of 8,000,000 shares at $5.00 per share, raising $40 million in gross proceeds. The offering closed on May 7, 2025, with notable participation from CEO Allan Evans, board members, and the company's advisory board. As a U.S.-based manufacturer of drone parts, UMAC plans to allocate approximately $2.0 million of the proceeds towards drone motor manufacturing equipment, with the remainder directed to general corporate purposes and working capital. Dominari Securities LLC acted as the exclusive placement agent for this offering, which was conducted under an effective S-3 shelf registration statement.

Positive

• Successfully raised $40 million through public offering
• Strong insider participation with CEO, board members, and advisory board purchasing shares
• $2.0 million allocated for drone motor manufacturing equipment expansion
• Effective shelf registration already in place, streamlining the offering process

Negative

• Significant shareholder dilution with 8 million new shares issued
• Large portion of proceeds ($38 million) allocated to general purposes without specific use

Insights

Financial Analyst

Unusual Machines secured $40M through stock offering, strengthening balance sheet while signaling growth intentions in domestic drone manufacturing.

Unusual Machines has completed a significant $40 million capital raise through a public offering of 8 million shares priced at $5.00 each. This confidentially marketed offering provides substantial financial resources to this drone parts manufacturer, with several notable aspects worth examining.

The participation of insiders - including the CEO, board members, and advisory board - on identical terms as other investors represents a positive alignment of interests. While the press release doesn't specify the size of insider purchases, such participation typically signals management confidence in the company's trajectory.

Only $2 million (5% of proceeds) is specifically earmarked for drone motor manufacturing equipment, with the remainder allocated to general corporate purposes and working capital. This allocation gives management considerable flexibility while indicating a focused investment in production capability for a specific component category.

The CEO's statement emphasizing "accelerating American manufacturing for drones" suggests a strategic focus on domestic production capabilities, potentially positioning the company to capitalize on increased demand for U.S.-manufactured drone components.

This offering was executed through a shelf registration that became effective just weeks ago (April 21, 2025), indicating the company moved relatively quickly to secure this financing. The successful completion of the offering through Dominari Securities demonstrates the company was able to find sufficient investor interest to place the full 8 million shares.

For investors, this capital infusion strengthens Unusual Machines' balance sheet and provides resources to potentially accelerate growth initiatives, though it also represents dilution for existing shareholders (the exact percentage depends on the previously outstanding share count, which isn't disclosed).

ORLANDO, FLORIDA / ACCESS Newswire / May 7, 2025 / Unusual Machines, Inc. (the "Company"), a United States based manufacturer and distributor of drone parts has successfully closed a confidentially marketed public offering for the sale of 8,000,000 shares of the Company's Common Stock at the offering price of $5.00 per share (the "Offering") resulting in gross proceeds of $40 million, before deducting placement agent fees and other offering expenses. The Offering closed on May 7, 2025.

Allan Evans, the Company's Chief Executive Officer and other members of the Company's Board of Directors and all members of the Company's advisory board purchased shares in the Offering on the same terms as the other investors.

"We are overwhelmed by the level of support from everyone involved in the process," said Allan Evans "This raise is absolutely a case of everyone putting their money behind accelerating American manufacturing for drones".

The Company intends to use the net proceeds from this Offering for the purchase of an estimated $2.0 million of drone motor manufacturing equipment, general corporate purposes and working capital.

Dominari Securities LLC served as the exclusive placement agent in the Offering.

A shelf registration statement on Form S-3 (Registration No. 333-286413) relating to the public offering of the securities described above was previously filed with the Securities and Exchange Commission (SEC) and declared effective on April 21, 2025. A preliminary prospectus supplement and accompanying prospectus relating to the public offering was filed with the SEC and are available on the SEC's website at www.sec.gov. A final prospectus supplement describing the terms of the public offering was filed with the SEC and forms a part of the effective registration statement.

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 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 Unusual Machines, Inc.

The Company manufactures and sells drone components and drones across a diversified brand portfolio, which includes Fat Shark, the leader in first-person view ("FPV") ultra-low latency video goggles for drone pilots. Several of the Company' products have been approved for and listed on the Defense Innovation Unit's Blue Framework list. The Company also retails small, acrobatic FPV drones and equipment directly to consumers through the curated Rotor Riot ecommerce store. With a changing regulatory environment, The Company seeks to be a dominant component supplier to the fast-growing multi-billion-dollar US drone industry and the global defense business. According to Fact.MR, the global drone accessories market is currently valued at $17.5 billion and is set to top $115 billion by 2032. For more information visit Unusual Machines at https://www.unusualmachines.com/.

Investor Relations Contact:

CS Investor Relations
917-633-8980
investors@unusualmachines.com

SOURCE: Unusual Machines, Inc.

View the original press release on ACCESS Newswire

FAQ

How much did Unusual Machines (UMAC) raise in their May 2025 public offering?

Unusual Machines raised $40 million in gross proceeds through a public offering of 8,000,000 shares at $5.00 per share.

What is UMAC planning to do with the proceeds from their 2025 public offering?

UMAC plans to use $2.0 million for drone motor manufacturing equipment, with the remaining funds allocated to general corporate purposes and working capital.

Who participated in UMAC's May 2025 public offering?

The offering included participation from CEO Allan Evans, board members, and all members of the company's advisory board, who purchased shares on the same terms as other investors.

What was the price per share for UMAC's May 2025 public offering?

The offering price was $5.00 per share for 8,000,000 shares of Common Stock.

Who was the placement agent for UMAC's $40 million offering?

Dominari Securities LLC served as the exclusive placement agent for the offering.