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Drone tech developer ParaZero Technologies revises terms and removes warrants ahead of $10 million US IPO

March 24, 2023

ParaZero Technologies, which is developing autonomous parachute safety systems for commercial drones, revised the terms for its upcoming IPO on Friday.

The Kiryat Ono, Israel-based company now plans to raise $10 million by offering 2.0 million shares at a price range of $4 to $6. The company had most recently filed to offer 1.6 million units at a range of $4.25 to $6.25, with each unit containing one share of common stock and two warrants. At the midpoint of the revised range, ParaZero Technologies will raise 16% more 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, ParaZero Technologies will be excluded from Renaissance Capital's 2023 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 booked $1 million in revenue for the 12 months ended December 31, 2022. It plans to list on the Nasdaq under the symbol PRZO. Aegis Capital Corp. is the sole bookrunner on the deal.