Why Is ONDS Stock Falling Premarket? Omnisys-Related Share Resale, Cramer’s ‘Meme Stock’ Jab Weigh

The company registered 2.7 million acquisition-related shares for resale.

• The shares relate to Omnisys' acquisition, and Ondas filed a prospectus supplement to permit eligible holders to resell them. 
• The move does not raise new capital but enables shareholders to sell shares in the market. 
• Jim Cramer criticized Ondas, calling it a “meme stock” and saying he cannot support it.

Ondas (ONDS) stock slipped in Wednesday’s premarket as the company submitted a new filing with the U.S. Securities and Exchange Commission tied to shares issued as part of its recently completed purchase of Israeli technology company, Omnisys Ltd.

The filing allows certain shareholders to resell stock they received in connection with the transaction.

ONDS Registers Acquisition-Related Shares For Resale 

The disclosure, made in a Form 8-K, outlines the registration of more than 2.7 million common shares previously issued in connection with the Omnisys acquisition. The company also filed a prospectus supplement associated with an existing shelf registration statement to facilitate potential future resales by eligible holders. 

The company issued 2,701,420 shares of common stock to selected shareholders as part of the payment for its Omnisys acquisition announced in May. 

The registration does not represent a new capital raise for Ondas. Instead, it permits designated shareholders to sell their shares from time to time in the public market.

Ondas stock traded over 1% lower in Wednesday’s premarket. 

Jim Cramer's View On Ondas

Ondas came under scrutiny from Jim Cramer, who expressed skepticism about the stock during a recent installment of CNBC's "Mad Money" lightning round segment.

Cramer offered a brief assessment of the shares, categorizing them as a speculative market favorite rather than a fundamentally driven investment. 

“This is a meme stock...I can’t get behind a meme stock,” said Cramer. 

The term "meme stock" generally refers to companies whose share prices experience significant volatility driven by social media activity, retail investor interest, or online trading communities rather than traditional valuation metrics. 

What Are ONDS Retail Traders Saying

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory with a 108% surge in message volume in 24 hours. 

A user said, “Cramer really doesn't know WT* he's talking about when it comes to small-cap stocks.  He's a MAG-7 promotion.” 

Another user said, “This stock is heavily manipulated but calling it a meme stock is just simply not true lol. They have fundamentals and strong tailwinds.” 

ONDS stock declined by 1% year-to-date. 

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