ParaZero Technologies Ltd.
(Note: This is a unit IPO again – as of its F-1/A filing dated Nov. 3, 2022 – with each unit consisting of one share of common stock and two warrants – each to buy a share of common stock. See notes at the end of the IPO Profile on the the updated terms and the history of filings.)
We are an aerospace company that is focused on drone safety systems and engaged in the business of designing, developing, and providing what we believe are best-in-class autonomous parachute safety systems for commercial drones, also known as unmanned aerial systems or UAS. (Incorporated in Israel)
Our company was founded by a group of aviation professionals, together with veteran drone operators, to address the drone industry’s safety challenges. Our goal is to enable the drone industry to realize its greatest potential through increasing safety and mitigating operational risk.
Our unique patented technology for drones, the SafeAir system, is designed to protect hardware, people and payload in the event of an in-flight failure. The SafeAir system is a smart parachute system that monitors UAS flight in real time, identifies critical failures and autonomously triggers a parachute in the event that certain parameters indicative of a free fall are present. The system contains a flight termination system, a black box to enable post-deployment analysis, and a warning buzzer to alert people of a falling drone. In addition to being fully autonomous, the SafeAir system includes a separate remote control for manual parachute deployment capability.
We have a global distribution footprint and have forged partnerships all around the world, including India, South Korea, the United States, Latin America and Europe. We sell our drone safety systems as off-the-shelf solutions, as well as perform integrations with original equipment manufacturers, or OEMs, offering customized, bespoke safety solutions for a large variety of aerial platforms.
Our technology has been sold to and used by some of the world’s top companies and organizations, including drone companies such as LIFT Aircraft, Airobotics, SpeedBird Aero and Doosan Corporation, and other leading brands such as CNN, The New York Times, Hensel Phelps, Verizon Media (Skyward), Fox Television, the Chicago Police Department and Fortis Construction.
**Note: Revenue and net loss figures are for the 12 months that ended June 30, 2022.
(Note: ParaZero Technologies Ltd. relaunched its IPO on Monday, Nov. 28, 2022, with a pricing date set for Dec. 15, 2022, and the same terms: 1.6 million units at $4.25 to $6.25 to raise $8.4 million. Background: ParaZero Technologies Ltd.’s IPO was among several small deals whose pricing dates were delayed after the NASDAQ put a hold on approving small-cap IPO listings during the week of Sept. 19, 2022.)
(Note: ParaZero Technologies restructured its IPO again – changing it back to a unit offering of stock and warrants – and cutting its size – in an F-1/A filing dated Nov. 3, 2022: 1.6 million units at $4.25 to $6.25 to raise $8.4 million – down from 5.75 million shares at $4.00 to $6.00 to raise $28.76 million. Each unit consists of one share of common stock and two warrants – each to buy one share of common stock – the same as in its original terms filed in September. The new terms represent a 70.7 percent cut in the IPO’s estimated proceeds. However, under the previous terms, the company would have received only $8.75 million because it was offering only 1.75 million shares while the other 4.00 million shares were being sold by selling stockholders.)
(Note: ParaZero Technologies revamped its IPO in an F-1/A filing dated Oct. 6, 2022, by removing the warrants and increasing the number of shares to 5.75 million ordinary shares – 1.75 million shares offered by the company and 4.00 million shares offered by selling stockholders – and cutting the price range to $4.00 to $6.00. In its F-1/A filing on Oct. 6, 2022, ParaZero Technologies updated its financial statements through June 30, 2022.)
(**Note: ParaZero Technologies will NOT receive any proceeds from the sale of the selling stockholders’ shares – 4,001,423 shares – with that amount estimated at $20.01 million, based on $5 mid-point pricing. **ParaZero’s estimated proceeds from the IPO will be only $8.75 million – based on 1.75 million shares (1,750,000 shares) at $5.00 mid-point pricing.)
(Background: The IPO’s previous terms were 3.04 million units at $5.20 to $7.20 to raise $18.85 million, according to an F-1/A filing dated Sept. 14, 2022. That was an upward revision from 2.53 million units at $5.20 to $7.20 in an F-1/A filing on Sept. 7, 2022. Under the unit offering terms, each unit had consisted of one share of common stock and two warrants, each to buy one share of stock. ParaZero Technologies filed its F-1 (prospectus) on May 24, 2022, after filing confidential IPO paperwork on March 11, 2022,)
|Industry:||Aircraft Parts & Auxiliary Equipment, NEC|
|Address||30 Dov Hoz Kiryat Ono, 5555626, Israel|
|View Prospectus:||ParaZero Technologies Ltd.|
|Revenues||$0.41 mil (last 12 months)|
|Net Income||$-1.3 mil (last 12 months)|
|Price range||$4.25 - $6.25|
|Est. $ Volume||$8.4 mil|
|Manager / Joint Managers||Aegis Capital Corp.|
|Expected To Trade:||12/16/2022|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|