9% Surge, Major Transactions... What’s Happening with Small Drone and Wireless Communication Stocks?

Small-Cap Tech Stock Bulks Up Ahead of Special Shareholders’ Meeting

Ondas Holdings Inc. (ONDS) closed at $9.74 on December 31 (U.S. Eastern Time), up 8.79% from the previous day. Its market capitalization swelled to about $3.65 billion, a roughly $350 million increase in a single session. Trading volume exceeded 115.28 million shares, signaling an unusually heated market. Analysts attribute this year-end surge to a recent series of moves aimed at strengthening the company’s capital base and overhauling its governance structure.

## SEC Filings: Capital Boost Followed by Proposal to Double Issuance Capacity to 800 Million Shares

Investors were first drawn to a flurry of SEC filings. In late December 2024, the company issued new 3% B-2 convertible notes to raise approximately $18.9 million, earmarking net proceeds of $16.5 million to accelerate drone business growth through its subsidiary, Ondas Autonomous Systems.

In early 2025, Ondas Holdings called a special shareholders’ meeting to propose amendments to its charter, including:

• Doubling the authorized common stock from 400 million to 800 million shares
• Increasing the 2021 Stock Incentive Plan by 61 million shares

Market participants view these proposals as signals that the company is preparing for further capital raises and an expanded equity-based compensation program.

Diverging Views on Dilution vs. Growth Momentum Fuel Short-Term Demand

Expanding the number of authorized shares and incentive-plan shares typically raises dilution concerns among existing shareholders. Yet Ondas’s stock showed a steep rally. In the short term, investors have focused on the company’s commitment to aggressive investment in its drone and industrial wireless-communications businesses. Anticipation of large contracts and business expansion drove buying interest. Since November, a series of new contract announcements has highlighted the widening of Ondas’s business pipeline, attracting capital that favors small-cap growth stocks.

Key Variables: Special Meeting Outcome and Pace of Additional Fundraising

All eyes are now on the special shareholders’ meeting scheduled for November 18, 2025. If the charter amendments and incentive-plan changes pass, Ondas Holdings will gain financial flexibility to pursue large equity offerings, additional convertible-note issuances, and expanded stock-based compensation. That arsenal could serve as strong ammunition for long-term growth in the drone and wireless-communications sectors—but it also raises the prospect of near-term per-share value dilution. Given the recent year-end surge in share price, upcoming disclosures on fundraising terms and operational results will be critical in determining whether this rally is a temporary boost or the start of a structural re-rating.