ParaZero Technologies Ltd. Announces Pricing of $5.1 Million Private Placement
KIRYAT ONO, ISRAEL, Oct. 26, 2023 (GLOBE NEWSWIRE) -- ParaZero Technologies Ltd. (“ParaZero” or the “Company”), an aerospace company focused on drone safety systems for commercial drones and urban air mobility aircraft, today announced that it has entered into a securities purchase agreement with certain institutional investors for aggregate gross cash proceeds of $5.1 million, before deducting fees to the placement agent and other offering expenses payable by the Company.
In connection with the offering, the Company will issue an aggregate of 4,636,364 units and pre-funded units. The pre-funded units will be sold at the same purchase price less the pre-funded warrant exercise price of $0.005. Each unit and pre-funded unit will consist of one ordinary share (or pre-funded warrant) and one common warrant exercisable for one ordinary share at an exercise price of $1.10 per ordinary share. The common warrants will be exercisable upon issuance and will have a term of 5.5 years from the issuance date. The number of securities issued under the units is subject to adjustment as described in more detail in the report on Form 6-K to be filed in connection with the offering.
The closing of the private placement is expected to occur on or about October 30, 2023, subject to the satisfaction of certain customary closing conditions.
Aegis Capital Corp. is acting as the Exclusive Placement Agent for the Offering.
The securities described above are being sold in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the Securities and Exchange Commission (the "SEC") covering the resale of the ordinary shares sold in the offering and the ordinary shares issuable upon exercise of the pre-funded warrants and the warrants sold in the offering.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, 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.
