Unusual Machines plunges on deep-discounted $40 mln stock sale

Unusual Machines

05/05/2025 20:31

**  Shares of Unusual Machines UMAC.A drop 26.4% to $5.09 on Mon after raising equity at a steep discount

    ** Orlando, Florida-headquartered firm, which sells ultra-low latency video goggles for drone pilots, early Mon announced pricing confidentially marketed public offering of 8 mln shares for $40 mln gross proceeds

    ** Offering price of $5 represents 27.6% discount to stock's close on Fri

    ** UMAC plans to use net proceeds to accelerate completion of its drone motor facility in Florida, as well as for general purposes, working capital

    ** Dominari Securities, a subsidiary of Dominari Holdings DOMH.O, is sole placement agent for the offering

    ** In late Feb, U.S. President Donald Trump's two eldest sons, Donald Trump Jr and Eric Trump, disclosed a combined 13.4% stake in biotech-turned-financial advisory DOMH, which is headquartered at the Trump Tower in New York, weeks after the duo joined the DOMH advisory board

    ** In Nov, UMAC added Don Jr to its advisory board

    ** UMAC had ~16.83 mln shares outstanding as of May 2, per the SEC prospectus filing

** With move on the session, UMAC shares down 70% YTD

** Co went public in Feb 2024 in $5 mln IPO priced at $4, led by underwriters Dominari, Revere Secs and R.F. Lafferty

** Stock has traded as low as 98 cents (May 2024) and as high as $23.62 (Dec 2024)

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))