Red Cat Holdings, Inc. Investors: Company Investigated by the Portnoy Law Firm

Core Viewpoint - Red Cat Holdings, Inc. is under investigation for possible securities fraud, with a potential class action being considered for investors who suffered losses [1][2]. Company Developments - In March 2022, Red Cat's subsidiary, Teal Drones, was selected for the U.S. Army's Short Range Reconnaissance Program [3]. - The fiscal year 2023 results revealed that Red Cat's Salt Lake City facility was only "substantially completed," with a current production capacity of 100 drones per month, and full capacity of 1,000 drones expected to take 2-3 years and require additional capital [4]. - In the first quarter of fiscal 2025, Red Cat missed analyst expectations, attributing this to a retooling of the Salt Lake City facility and a pause in manufacturing, leading to a significant stock price drop of 25.3% [5]. - On November 19, 2024, Red Cat announced securing a contract with the U.S. Army, estimated to be worth "hundreds of millions," but a subsequent report questioned this valuation, suggesting it was only worth $20-25 million, resulting in a 21.5% stock price decline [6].