Unusual Machines receives $800,000 order from Red Cat Holdings

ORLANDO, FL - Unusual Machines, Inc. (NYSE American:UMAC) has received an $800,000 order from Red Cat Holdings, Inc. (NASDAQ:RCAT) for drone components, according to a press release statement issued Friday. The news comes as Red Cat, currently valued at $1.36 billion, has seen its stock surge 13.6% in the past week, trading near its 52-week high of $15.27.

The order includes various components such as the Aura Analog Camera, Aura VTX, Brave Flight Controller, Brave ESC, HDO+ Goggles, and motors. These components will be integrated into Red Cat’s FANG drones, which are designed for defense, public safety, and government agency applications.

The components are NDAA-compliant, meaning they meet the requirements of the National Defense Authorization Act, which restricts the use of certain foreign-made technologies in U.S. government systems. Red Cat maintains a strong liquidity position with a current ratio of 3.8, indicating robust ability to fulfill orders and operational commitments.

"After working with Unusual Machines for the past year and a half to produce FANGs, we’re ready to bring these American-made FPV drones to market," said Jeff Thompson, Red Cat CEO.

Stacy Wright, EVP of Revenue at Unusual Machines, emphasized the company’s manufacturing readiness and speed-to-market capabilities as factors in securing the order.

Unusual Machines describes itself as a provider of high-performance drone components, while Red Cat Holdings is a drone technology company that integrates robotic hardware and software for military, government, and commercial operations.

The press release did not specify when deliveries of the components would begin.

In other recent news, Red Cat Holdings Inc. has been active with several financial and strategic developments. The company announced a public offering of 17,968,750 shares of common stock, raising approximately $172.5 million in gross proceeds. This offering included the full exercise of the underwriters’ option to purchase an additional 2,343,750 shares. Additionally, Red Cat priced another public offering of 15,625,000 shares at $9.60 per share, aiming to generate about $150 million in gross proceeds. These funds are intended for general corporate and working capital purposes, including expenditures related to their new unmanned surface vessel division.

In terms of market analysis, Needham initiated coverage of Red Cat with a Buy rating, setting a price target of $17.00. The research firm highlighted the potential growth in the unmanned aerial systems industry, noting Red Cat’s positioning to meet the increasing demand for defense-grade drones. The company has also announced that the underwriter, Northland Capital Markets, has a 30-day option to purchase up to an additional 15% of the offered shares. These recent developments underscore Red Cat’s strategic focus on expanding its market presence and financial strength.

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