Unusual Machines, a Puerto Rico-based company, has announced that it will be increasing the number of shares in its initial public offering (IPO) from 1 million to 1.5 million. According to a regulatory filing made on Monday, the shares will be priced between $4 and $6, resulting in expected gross proceeds of $7.5 million at the midpoint price.
Acquisition of Red Cat Holdings’ Consumer Division
The company intends to utilize a portion of the funds raised from the IPO to finance its acquisition of Red Cat Holdings’ consumer division. The acquisition, which was announced last year, will involve Unusual Machines paying $18 million in cash and securities. This strategic move will enable them to expand their portfolio with recreational and hobbyist drones, as well as first-person-view goggles units.
Allocation of Funds
Out of the total proceeds raised, Unusual Machines plans to allocate $2 million towards completing the transaction. Additionally, $3.89 million will be utilized for working capital and general corporate purposes.
Maxim Group LLC and Dominari Securities have been appointed as the underwriters for the offering.