Red Cat raises $172.5 million in public offering of common stock

SAN JUAN, Puerto Rico - Drone technology company Red Cat Holdings, Inc. (NASDAQ:RCAT), whose stock has surged over 250% in the past year according to InvestingPro data, announced Friday it has priced an underwritten public offering of 17,968,750 shares of common stock, raising approximately $172.5 million in gross proceeds.

The offering includes the full exercise of the underwriters’ option to purchase an additional 2,343,750 shares. Proceeds will be used for general corporate and working capital purposes, including operating expenditures related to the company’s new unmanned surface vessel division. The company maintains a healthy current ratio of 3.8x and operates with moderate debt levels, as revealed by InvestingPro analysis.

Northland Capital Markets acted as sole bookrunner for the transaction, with Ladenburg Thalmann & Co. Inc. serving as co-manager.

The offering was made pursuant to a shelf registration statement filed with the Securities and Exchange Commission on September 15, 2025, which was declared effective on September 17, 2025.

Red Cat, which trades on the Nasdaq, provides 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 develops uncrewed surface vessels.

The announcement comes as Red Cat continues to develop its portfolio of unmanned systems across multiple domains, according to the company’s press release statement.

In other recent news, Red Cat Holdings, Inc. announced a public offering of 15,625,000 shares of common stock priced at $9.60 per share, aiming to raise approximately $150 million before expenses. The offering is expected to close on or about September 19, 2025, pending customary conditions. Additionally, Red Cat plans to grant Northland Capital Markets a 30-day option to purchase up to an additional 15% of the offered shares. The company intends to use the net proceeds for general corporate purposes, including expenditures related to its new unmanned surface vessel division. In another development, Red Cat announced a mixed shelf offering of up to $300 million in securities, which may include common stock, preferred stock, warrants, and units. Furthermore, Red Cat has entered into a strategic partnership with Safe Pro Group Inc. to integrate AI-powered explosive threat detection technology into its Black Widow drones. This collaboration aims to enhance the drones’ ability to identify and locate over 150 types of explosive threats in real-time.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.