ParaZero Technologies Ltd. (NASDAQ: PRZO) announced the completion of a registered direct offering that raised approximately $4 million in gross proceeds. The aerospace defense company sold 5,333,333 ordinary shares and pre-funded warrants to a single institutional investor at $0.75 per ordinary share.

The offering included ordinary shares priced at $0.75 each and pre-funded warrants priced at $0.74999 each. The pre-funded warrants carry an exercise price of $0.00001 and are immediately exercisable until exercised in full. The transaction closed on March 24, 2026.

ParaZero stated it intends to use the net proceeds for general corporate purposes and working capital, combined with existing cash. Following the offering's completion, the company has 28,760,239 ordinary shares issued and outstanding, assuming full exercise of all pre-funded warrants issued in the offering.

Aegis Capital Corp. served as the exclusive placement agent for the offering. Greenberg Traurig, P.A. and Gornitzky & Co. acted as co-counsels to ParaZero, while Kaufman & Canoles, P.C. represented Aegis Capital Corp.

The registered direct offering was 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 aerial delivery systems.