Red Cat announces public offering of common stock

SAN JUAN, Puerto Rico - Drone technology company Red Cat Holdings, Inc. (NASDAQ:RCAT), whose stock has surged over 27% in the past week and maintains a market capitalization of $1.13 billion, announced Wednesday its intention to offer shares of common stock in an underwritten public offering. According to InvestingPro analysis, the company’s stock is currently trading above its Fair Value.

The company plans to grant the underwriter, Northland Capital Markets, a 30-day option to purchase up to an additional 15% of the offered shares. Red Cat intends to use the net proceeds for general corporate and working capital purposes, including operating expenditures and capital investments related to its new unmanned surface vessel division. The company currently holds more cash than debt on its balance sheet, with a healthy current ratio of 3.8x, according to InvestingPro data.

The offering is subject to market conditions, with no assurance regarding completion timing, size, or terms. It will be conducted under a shelf registration statement on Form S-3 filed with the Securities and Exchange Commission on September 15, 2025, and declared effective on September 17, 2025.

A preliminary prospectus supplement and accompanying prospectus for the offering will be filed with the SEC and available on its website.

Red Cat develops drone and robotic solutions for defense and national security through its subsidiaries Teal Drones and FlightWave Aerospace. The company recently expanded into maritime operations through Blue Ops, Inc., which focuses on uncrewed surface vessels.

The announcement was made in a company press release statement.

In other recent news, Red Cat Holdings announced a mixed shelf offering of up to $300 million in securities, which may include common stock, preferred stock, warrants, and units. The company also revealed plans for an underwritten public offering of its common stock, with an option for the underwriter to purchase an additional 15% of the shares. These financial moves are intended to support general corporate purposes and capital investments, particularly in their new unmanned surface vessel division. In a strategic development, Red Cat partnered with Safe Pro Group to integrate AI-powered explosive threat detection into its Black Widow drones, enhancing military capabilities. Additionally, the Black Widow drone system has been approved for inclusion in the NATO Support and Procurement Agency catalog, facilitating procurement opportunities for NATO members. This approval enables streamlined acquisition processes for NATO member nations and partners. These developments indicate Red Cat’s ongoing efforts to expand its technological offerings and market reach.

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