Duke Robotics Prices $9.2M Offering

Duke Robotics Corp. said on May 15 that it priced a $9.2 million underwritten public offering as the company began trading on the Nasdaq Capital Market. The Fort Lauderdale, Florida-based company said the deal covers 1,125,000 units priced at $8.20 each. Each unit includes one share of common stock and one warrant to buy one share at $8.60 over five years. The company said the shares and warrants are expected to trade on Nasdaq under the symbols DUKR and DUKRW, with the offering expected to close on May 18. ### How is the financing structured? The 1,125,000 units were priced at $8.20 apiece, implying gross proceeds of about $9.2 million before underwriting discounts, commissions and other expenses, the company said. The securities are immediately separable, meaning investors receive the common stock and warrants as separate instruments at issuance. (finance.yahoo.com) The warrants carry an exercise price of $8.60 per share and a five-year term, according to the offering announcement. That structure is common in small-cap underwritten offerings because it gives investors additional upside if the stock trades above the warrant strike price. That last point is an inference based on the warrant terms, not a statement by the company. (crweworld.com) ### Why does the Nasdaq listing matter for this deal? Nasdaq is where Duke Robotics said its common stock and warrants are expected to begin trading on May 15. Before the uplisting, the company traded on the OTCQB market under the symbol DUKR. A March 5 reverse stock split was part of the run-up to that move. (crweworld.com) Duke Robotics said then that it would execute a 25-for-1 reverse split effective March 6, and said the step was intended to raise the per-share trading price and support a potential uplisting to a national exchange, subject to meeting listing requirements. After the split, the company said its outstanding common shares would fall to about 2.25 million from about 56.3 million. (finance.yahoo.com) ### What does Duke Robotics say it will do with the money? Duke Robotics said in its registration statement that it planned to use net proceeds for research and development, sales and marketing expansion, business development, potential acquisitions and general working capital. The filing also said any unused proceeds could be held in short-term, investment-grade instruments or U.S. government securities pending deployment. (sec.gov) The SEC registration statement was filed on March 31 and identified Duke Robotics as a Nevada corporation with principal executive offices in Mevo Carmel Science and Industrial Park, Israel. The filing listed Yossef Balucka as chief executive officer and classified the company as a smaller reporting company. (sec.gov) ### What business is Duke Robotics bringing to public investors? Duke Robotics has described itself as a robotics company developing drone-based and stabilization systems for defense and civilian markets. In earlier company disclosures, it said its products include TIKAD, a stabilized weapons drone system, and IC Drone, a system designed to clean electric utility insulators. (sec.gov) An April 3 company update said Duke Robotics had expanded work with Elbit Systems related to the “Birds of Prey” stabilized weapons drone system. Duke Robotics said it would be entitled to a commission in the mid-single-digit percentage range from transactions resulting from its marketing activities, in addition to royalties under the original agreement. (finance.yahoo.com) ### What happens next? May 18 is the expected closing date for the offering, according to the company’s announcement. Nasdaq trading in the common stock and warrants under DUKR and DUKRW was expected to begin on May 15, with the proceeds to be received after deducting underwriting fees and offering expenses. (finance.yahoo.com) (sec.gov)