Street Calls of the Week
SAN JUAN, Puerto Rico - Drone technology company Red Cat Holdings, Inc. (NASDAQ:RCAT), whose stock has surged nearly 290% over the past year according to InvestingPro data, announced Thursday it has priced an underwritten public offering of 15,625,000 shares of common stock at $9.60 per share.
The company expects to generate approximately $150 million in gross proceeds before deducting underwriting discounts, commissions and other offering expenses. The offering is expected to close on or about September 19, 2025, subject to customary closing conditions. InvestingPro analysis indicates the company maintains a healthy current ratio of 3.8, suggesting strong ability to meet short-term obligations.
Red Cat has also granted underwriters a 30-day option to purchase up to 2,343,750 additional shares at the public offering price, less underwriting discount.
The company intends to use net proceeds for general corporate and working capital purposes, including operating expenditures related to its new unmanned surface vessel division.
Northland Capital Markets is acting as sole bookrunner for the transaction, with Ladenburg Thalmann & Co. Inc. serving as co-manager.
The offering is being made pursuant to 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.
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 with uncrewed surface vessels through Blue Ops, Inc.
This article is based on a press release statement from the company.
In other recent news, Red Cat Holdings announced plans for a mixed shelf offering of up to $300 million in securities, which may include common stock, preferred stock, warrants, and units. The company intends to provide further details on the timing and specific terms in future prospectus supplements. Additionally, Red Cat revealed a public offering of common stock, with Northland Capital Markets serving as the underwriter. The proceeds from this offering are earmarked for general corporate purposes and investments in the company’s new unmanned surface vessel division.
In a strategic move, Red Cat partnered with Safe Pro Group to integrate AI-powered explosive threat detection technology into its Black Widow drones. This partnership aims to enhance military applications by embedding Safe Pro’s Object Threat Detection system, which can identify over 150 types of explosive threats. Furthermore, Red Cat’s Black Widow drone system was recently added to the NATO Support and Procurement Agency catalog, a move that could open up new procurement opportunities. These developments mark significant steps for Red Cat in expanding its technological capabilities and market reach.
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