RADA Offering More Shares

RADA Electronic Ind. Ltd (NASDAQ:RADA) reported a common stock offering Wednesday.

The Israel-based company, a global defense technology company, today announced that it intends to offer and sell its ordinary shares in an underwritten public offering. RADA also expects to grant to the underwriters a 30-day option to purchase up to an additional 15% of its ordinary shares to cover overallotments, if any.

There can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the offering.
RADA intends to use the net proceeds from this offering for general corporate purposes.

On Tuesday, the company announced it had received a total of over $6 million in new orders during December 2019. The aggregate of new orders received in 2019 was $60 million, an all-time record for the Company.

Based on the current market acceptance of RADA’s tactical radars and the level of new orders, the company expects that revenues in 2020 will reach in excess of $65 million, which represents growth of over 50% when compared to the current forecast of $43 million given for 2019.

Over 80% of the new orders during 2019 were for RADA’s growth engine: multi-mission, software-defined tactical radar systems.

Applications for these radar systems are mainly for C-UAV (counter UAV and counter drone) solutions, V-SHORAD (very short-range air defense) and APS (active protection systems) solutions. The remainder were for RADA’s legacy avionics systems.

Shares tumbled 39 cents, or 6.2%, to $5.90.