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

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)