ParaZero Technologies Ltd. (NASDAQ: PRZO) announced it entered into a definitive agreement for a registered direct offering with a single institutional investor to raise approximately $4 million through the sale of ordinary shares and pre-funded warrants.

The Tel Aviv-based aerospace defense company will sell 5,333,333 ordinary shares or pre-funded warrants at $0.75 per ordinary share. Pre-funded warrants are priced at $0.74999 each, representing the public offering price minus an exercise price of $0.00001 per warrant.

The pre-funded warrants will be immediately exercisable and may be exercised at any time until fully exercised. For each pre-funded warrant sold, the number of ordinary shares in the offering will decrease on a one-for-one basis.

The transaction is expected to close on or about March 24, 2026, subject to customary closing conditions. ParaZero expects to use net proceeds from the offering, along with existing cash, for general corporate purposes and working capital.

Following completion of the offering, the company will have 28,760,239 ordinary shares issued and outstanding, assuming exercise of all pre-funded warrants issued in the offering.

Aegis Capital Corp. is serving as exclusive placement agent for the offering. Greenberg Traurig, P.A. and Gornitzky & Co. are acting as co-counsels to ParaZero, while Kaufman & Canoles, P.C. represents Aegis Capital Corp.

The registered direct offering is being conducted under an effective shelf registration statement on Form F-3 that was filed with the Securities and Exchange Commission and declared effective on August 16, 2024.

ParaZero develops autonomous solutions for manned and unmanned aerial systems, including parachute recovery systems, counter-drone platforms, and precision aerial delivery systems.