Unusual Machines, a drone industry-focused company based in Puerto Rico, has decided to reduce the size of its initial public offering (IPO) from 1.5 million shares to 1 million shares. According to a filing with the Securities and Exchange Commission, the company expects to generate a net revenue of approximately $4.63 million, based on an anticipated price range of $4 to $6 per share.
Unusual Machines intends to use $1 million of the IPO proceeds to acquire two drone-focused companies: Fat Shark and Rotor Riot. Both acquisitions will be made from Red Cat Holdings, which will also become a significant shareholder of Unusual Machines following the offering.
About Fat Shark and Rotor Riot
Fat Shark specializes in manufacturing first-person view drone goggles, while Rotor Riot operates as both an e-commerce platform and a digital marketing company with a primary focus on drones.
Allocation of Proceeds
Out of the total proceeds, Unusual Machines plans to allocate $2.725 million for working capital and general corporate purposes.
Maxim Group is serving as the underwriter for the IPO.