ParaZero Technologies, which is developing autonomous parachute safety systems for commercial drones, lowered the proposed deal size for its upcoming IPO on Friday.
The Kiryat Ono, Israel-based company now plans to raise $8 million by offering 1.6 million units at a price range of $4.25 to $6.25, with each unit consisting of one share of common stock and two warrants, exercisable at $5 (assuming pricing at the midpoint). The company had previously filed to offer 5.8 million shares (70% secondary) at a range of $4 to $6. At the midpoint of the revised range, ParaZero Technologies will raise -71% less in proceeds than previously anticipated.
Concurrently, selling shareholders have registered 4.0 million shares, which may be offered and sold from time to time pursuant to the separate resale prospectus.
Because the company will have a post-IPO market cap of less than $50 million, and is offering units, ParaZero Technologies will be excluded from Renaissance Capital's 2022 IPO stats.
ParaZero is an aerospace company focused on drone safety systems and engaged in designing, developing, and providing autonomous parachute safety systems for commercial drones. Its patented technology, the SafeAir system, is designed to protect hardware, people, and payload in the event of an in-flight failure.
ParaZero Technologies was founded in 2013 and plans to list on the Nasdaq under the symbol PRZO. Aegis Capital Corp. is the sole bookrunner on the deal.
