Red Cat Holdings Announces Closing of $46.75 Million Registered Direct Offering of Common Stock

Core Viewpoint - Red Cat Holdings, Inc. has successfully closed a registered direct offering, raising approximately $46.75 million to support its growth in the drone industry and accelerate product development for its new Unmanned Surface Vessels division [1][3]. Financial Summary - The offering involved the purchase and sale of 6,448,276 shares of common stock, resulting in gross proceeds of about $46.75 million before fees and expenses [1]. - The company plans to use the net proceeds for general corporate and working capital purposes, including operating expenditures for its new unmanned surface vessel division [2]. Operational Highlights - Jeff Thompson, the CEO, stated that this financing positions the company for significant growth in the drone industry [3]. - Northland Capital Markets acted as the exclusive placement agent, while Ladenburg Thalmann served as the financial advisor for the transaction [3]. Company Overview - Red Cat Holdings, Inc. specializes in drone technology, integrating robotic hardware and software for military, government, and commercial operations [6]. - The company has developed a Family of Systems, including the Black Widow, TRICHON, and FANG drones, with applications in military operations [6]. Future Outlook - The company aims to expand its manufacturing capacity, moving production of the Edge 130 to a larger facility and doubling the production capacity of the Black Widow to 1,000 units per month [7]. - Red Cat reiterates its annual revenue guidance for 2025, projecting between $80 million and $120 million, with specific sales targets for various products [7].