ParZero Technologies (PRZO), a developer of drone safety systems, has cut the number of warrants for its proposed $16M initial public offering.
The Israeli company said in its most recent filing that it is now looking to offer 2.5M units priced between $5.20 to $7.20, which would raise approximately $16M if priced at the midpoint at $6.20 per unit. Each unit would consist of one ordinary share plus one warrant to buy one ordinary share at the IPO price.
In addition, investors whose purchases would give them a beneficial ownership stake of over 4.99% of the company’s outstanding ordinary shares would be entitled to buy up to 2.5M pre-funded units that would include one pre-funded warrant to buy one share and one warrant to buy one share.
According to the filing’s fee schedule, the deal could raise up to $55M if the various warrants are exercised and the units were priced at $6.20.
In May, ParZero said that it planned to offer 2.5M units that would include one share plus two warrants to buy one share each. Investors buying shares that would result in their owning more than 4.99% of the outstanding ordinary shares could buy pre-funded warrants that included one pre-funded warrant for one share and two warrants to buy one share apiece. That deal was expected to raise up to $65M if the various warrants were exercised and the units were priced at $6.20.
The company hopes to list its shares on Nasdaq under the symbol PRZO. Aegis Capital is serving as sole bookrunner.
ParaZero specializes in autonomous parachute safety systems for commercial drones. The systems are designed to help mitigate safety and operations risks associated with in-flight failure. The company reported a net loss of $572K on revenue of $724K for 2021.
For more on ParaZero, check out Donovan Jones’s “ParaZero Technologies Readies $16M US IPO”.