Unusual Machines, Inc. (NYSE American: UMAC), a Nevada-based company specializing in radio and TV broadcasting and communications equipment with a market capitalization of $155.47 million, disclosed unregistered sales of equity securities and the results of its annual shareholder meeting in a recent Form 8-K filing with the Securities and Exchange Commission.
On November 27, 2024, the company issued a total of 1,440,000 shares of common stock to accredited investors through the conversion of Series A Convertible Preferred Stock. Additionally, 45,250 common shares were issued to Dominari Securities, LLC following a warrant exercise, generating $226,250 in cash proceeds. The company maintains a healthy liquidity position with a current ratio of 2.24, indicating strong ability to meet short-term obligations. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 16 additional ProTips available for subscribers.
Subsequently, on November 29, 2024, Unusual Machines issued 1,707,000 shares of common stock to accredited investors through further conversions of Series A Convertible Preferred Stock. Revere Securities, LLC exercised warrants for 8,750 shares, adding $43,750 to the company's proceeds.
On the day of the filing, December 2, 2024, the company converted an 8% Promissory Note and a 4% Convertible Promissory Note into 912,403 shares of common stock, with exercise prices of $1.99, raising an aggregate amount of $1,815,682 from accredited investors.
The same day, the 2024 Annual Meeting of Unusual Machines was held, where stockholders elected five board members and ratified the appointment of Salberg & Company as the independent registered public accounting firm for the fiscal year ending December 31, 2024. They also approved the issuance of additional common stock exceeding 20% of the current outstanding shares and the 2022 Equity Incentive Plan.
Due to technical difficulties, the company was unable to post the broadcast of the 3rd quarter earnings release call from November 14, 2024, on its website. Instead, the complete script for the earnings call was furnished as part of the filing.
The company also issued 250,000 shares of common stock to an accredited investor, related to the conversion of 50 shares of Series B Convertible Preferred Stock. In addition, Unusual Machines announced several significant developments, including the awarding of 50,000 shares of restricted common stock each to Allan Evans, Brian Hoff, and Andrew Camden, as a bonus for their contributions to a private placement.
The company has also increased the annual salary of its Chief Operating Officer, Andrew Camden, from $150,000 to $200,000. Furthermore, Unusual Machines has entered into an agreement limiting the issuance of common stock and amended its bylaws. The company has reported a restatement of its financial statements for fiscal years 2023 and 2022 due to errors identified during a re-audit conducted by Salberg & Company, P.A.
In addition, Unusual Machines has finalized transactions with Red Cat Holdings, involving a working capital adjustment related to the acquisitions of Rotor Riot and Fat Shark. The parties agreed to a $2.0 million adjustment, increasing the existing note payable from $2.0 million to $4.0 million. These are the recent developments for Unusual Machines, Inc.
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