Unusual Machines Plummets 18% After Announcing $48.5M Stock Offering

Unusual Machines' stock dropped 18% premarket after pricing a $48.5M stock offering. The company sold 5M shares at $9.70 per share through a securities purchase agreement with certain investors.

Unusual Machines, Inc. (NYSE American: UMAC) saw its stock price tumble 18% premarket on Monday after the company announced a $48.5 million registered direct offering. The offering, priced at $9.70 per share, represents a significant discount compared to Friday’s closing price of $12.12 [1][2][3][4].

The offering consists of 5 million shares of common stock (or pre-funded warrants) being sold through a securities purchase agreement with certain investors. Dominari Securities LLC is acting as the exclusive placement agent for the transaction, which is expected to close around July 15, 2025, subject to customary closing conditions [1][2][3].

Unusual Machines, a leader in drone technology and component manufacturing, plans to use the proceeds from the offering to support U.S.-based manufacturing expansion, address working capital needs, and fund general corporate purposes [1][2][3][4]. The company has filed an effective shelf registration statement previously with the SEC, and a detailed prospectus supplement outlining the terms of the offering will be made available through the regulator’s website [1][2][3][4].

The substantial discount in the offering price appears to be the primary driver behind the sharp decline in the company’s share value. Investors are likely assessing the impact of the dilution on the company’s equity and the strategic use of the funds [1][2][3][4].

References:
[1] https://www.investing.com/news/stock-market-news/unusual-machines-stock-tumbles-after-485m-offering-at-discounted-price-93CH-4133945
[2] https://ih.advfn.com/market-news/article/12630/unusual-machines-shares-drop-sharply-following-48-5-million-discounted-offering
[3] https://finance.yahoo.com/news/unusual-machines-announces-pricing-48-130000659.html
[4] https://www.stocktitan.net/news/UMAC/unusual-machines-announces-pricing-of-48-5-million-registered-direct-f49i8ulnbm2o.html