ParaZero Technologies Ltd. announced that it has entered into a Securities Purchase Agreement with certain institutional investors to issue an aggregate of 4,636,364 units and pre-funded units at a purchase price of $1.10 per unit and $1.095 per pre-funded unit, Series A warrant to purchase one ordinary share and Series B warrant to purchase additional ordinary shares for the aggregate gross proceeds of $5.1 million on October 26, 2023. The Pre-Funded Warrants will be immediately exercisable at an exercise price of $0.005 per ordinary share and will not expire until exercised in full. The Series A Warrants will be exercisable upon issuance, will have an exercise price of $1.10 per ordinary share and will have a term of 5.5 years from the date of issuance.

The number of Ordinary Shares issuable under the Series B Warrant, if any, is subject to adjustment to be determined pursuant the trading price of the Ordinary Shares following the effectiveness of a resale registration statement that the Company has undertaken to file on behalf the Purchasers, subject to a pricing floor of $0.50 per Ordinary Share, such that the maximum number of Ordinary Shares underlying the Series B Warrants would be an aggregate of 5,563,636 shares. The transaction is expected to close on October 30, 2023, subject to satisfaction of customary closing conditions.