Benzinga | Jan 4, 2021 09:27AM EST

AgEagle Aerial Systems Prices $6.375M Registered Direct Offering

WICHITA, Kan., Jan. 04, 2021 (GLOBE NEWSWIRE) -- AgEagle Aerial Systems Inc. (NYSE:UAVS), an industry leading provider of unmanned aerial vehicles and advanced aerial imagery, data collection and analytics technologies, today announced it has entered into a securities purchase agreement with an institutional investment firm (the "Investor"), which is an existing AgEagle shareholder. Pursuant to the agreement, the Investor is purchasing pre-funded warrants (the "Pre-Funded Warrants") to purchase up to 1,057,214 shares of common stock, for gross proceeds of $6.375 million (which includes a subsequent payment of the exercise price of the Pre-Funded Warrants in the amount of $1,057.21).



The Company expects the net proceeds from the offering to be approximately $6.315 million after deducting approximately $60,000 in offering expenses. The Company expects to spend the balance of the proceeds for general working capital purposes. The offering is expected to close on or about January 4, 2021, subject to the satisfaction of customary closing conditions.

Commenting on the financing, Nicole Fernandez-McGovern, CFO of AgEagle, noted, "We are very pleased to be proceeding with this offering, which, upon closing, will further strengthen the Company's liquidity position. The continued increase in AgEagle's cash position will allow us to pursue key corporate initiatives that are expected to strategically accelerate the Company's growth."

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. A registration statement relating to the offered securities (File Number 333-239157) has been declared effective by the Securities and Exchange Commission. A prospectus supplement relating to the securities will be filed by the Company with the SEC. When available, copies of the prospectus supplement relating to the registered direct offering, together with the accompanying prospectus, can be obtained at the SEC's website at www.sec.gov. For more detailed information relating to this transaction, please refer to the related Form 8-K to be filed with the U.S. Securities and Exchange Commission.