Drone maker Powerus slumps after unveiling securities, stock offering

Unusual Machines

Mon 18:15

** Shares of Powerus PUSA.O slide 6.3% to $1.93 on Mon after disclosing securities and stock offering
** Maker of aerial and maritime drones for military and industrial use early Mon said it may offer up to $250 mln of common and preferred stock, debt securities and warrants, per an SEC filing 
** In addition, it said selling stockholders may offload up to ~7.4 mln shares
** Co intends to use net proceeds it receives for general corp purposes, including expanding existing businesses, acquiring or investing in other businesses and paying down debt
** PUSA shares have shed 50% since co on Oct 1 completed its merger with Aureus Greenway, golf club operator backed by President Trump's two eldest sons
** Trump's sons, Donald Trump Jr. and Eric Trump, own ~79.6 mln PUSA shares via an investment fund called American Ventures for 9.9% beneficial stake, per the filing
** Drone components manufacturer Unusual Machines UMAC.A, which counts Trump Jr. as a member of its advisory board, holds ~10.2 mln PUSA shares for 4.9% beneficial stake

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))