What happened Shares of Ondas Holdings (NASDAQ: ONDS) plummeted today and were down by 13% as of 12:05 p.m. EDT on Wednesday, after the company priced a secondary stock offering. The deal, which was announced yesterday, was priced at a significant discount to market prices. So what Ondas, a technology company that operates a software-defined radio platform, sold 6.4 million shares at a price of $7 per share, representing a 22% discount from yesterday's closing price. The deal will raise $44.8 million in gross cash proceeds for Ondas, which intends to use the money for working capital and general corporate purposes. It's common for secondary offerings to price at a discount in order to entice investors to purchase shares through the deal, rather than in the open market, but investors might be disappointed with the magnitude of the discount. Image source: Getty Images. Additionally, the deal is meaningfully dilutive to existing shareholders. There were approximately 26.7 million shares outstanding prior to the offering, so selling 6.4 million newly issued shares translates into around 24% dilution. The underwriters also have an option to purchase an extra 960,000 shares, which would dilute existing investors even more. Now what The offering will bolster the company's balance sheet, as Ondas finished the first quarter with around $24 million in cash. It has provided a second-quarter outlook calling for revenue of $1 million to $1.5 million, with operating expenses expected to be $2.5 million to $3 million on a cash basis. 10 stocks we like better than Ondas Holdings Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Ondas Holdings Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source