Completion of Acquisition or Disposition of Assets.

 

 

On March 17, 2026, Ondas Inc. (the "Company") entered into a Share Purchase Agreement (the "Agreement"), by and among the Company, Indo Earth Moving Ltd., a company organized under the laws of the State of Israel ("Indo"), Indo's shareholders as set forth on Exhibit B thereto (the "Sellers"), and the Shareholders' Agent (as defined in the Agreement).

 

Pursuant to the Agreement, on March 17, 2026, (the "Closing Date"), the Company acquired 100% of the issued and outstanding share capital of Indo (the "Indo Share Capital"), for a purchase price of $5,663,398 in cash (the "Cash Consideration") and 5,493,388 shares (the "Shares") of Company common stock ("Common Stock"), par value $0.0001, including (a) 2,441,506 shares of Common Stock issued on the Closing Date (the "Closing Shares") and (b) 3,051,882 shares of Common Stock to be issued within five business days (the "Second Payment Date") following the achievement of the First Milestone (as defined in the Agreement) (the "Acquisition"). Pursuant to the Agreement, the Company may declare that the Acquisition is null and void prior to the First Milestone if Indo is not able to meet the full terms of the Tender (as defined in the Agreement).

 

Additionally, pursuant to the terms of the Agreement, for three years after the Closing Date, the Sellers have an opportunity to earn an additional aggregate amount of up to $140,000,000 in contingent earn-out payments, subject to certain milestones as set forth in the Agreement, payable in Common Stock (each an "Earn-Out Payment Date").

 

Pursuant to the Agreement, the Sellers shall be subject to daily trading volume limitations, whereby all such Sellers may not sell, in the aggregate, any Common Stock issued to such Sellers pursuant to the Agreement on any trading market in any single trading day to the extent such sales would exceed ten percent (10%) of the average daily trading volume of such stock as reported on the principal trading market on which the Common Stock is listed, calculated based on the ten (10) consecutive trading days immediately preceding the relevant date of determination. An officer of a subsidiary of the Company is an indirect minority owner of Indo.

 

Also on March 17, 2026, the Closing Shares were registered for resale pursuant to that certain Registration Rights Agreement, dated March 17, 2026, by and among the Company and the Sellers (the "Registration Rights Agreement"). Pursuant to the Registration Rights Agreement, the Company agreed on each of the Closing Date, the Second Payment Date, and any Earn-Out Payment Date to file with the Securities and Exchange Commission a prospectus supplement pursuant to Rule 424(b)(7) promulgated under the Securities Act of 1933, as amended (the "Securities Act"), providing for the resale by the Sellers of such issued shares of Common Stock, subject to the trading limitation discussed above.