Unusual Machines descends on $48.5 mln direct stock deal

Shares of Unusual Machines UMAC.A, seller of ultra-low latency video goggles for drone pilots, down 19.5% to $9.76 early Mon after $48.5 mln equity raise

Orlando, Florida-headquartered co early Mon says sold 5 mln shares in registered direct offering at $9.70

Offering price represents 20% discount to stock's last close

UMAC plans to use net proceeds to support U.S.-based manufacturing expansion, working capital among other purposes

Dominari Securities, a subsidiary of Dominari Holdings DOMH.O, exclusive placement agent for the offering

On Fri, UMAC shares jumped ~39.5% to close at $12.12 as drone stocks soared after U.S. Defense Secretary Pete Hegseth reportedly ordered sweeping new orders to fast-track drone production and deployment

Co has ~24.83 mln shares outstanding, per LSEG data

With move on the session, shares off ~40% YTD

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