Faruqi & Faruqi Reminds Red Cat Investors of the Pending Class Action Lawsuit with a Lead Plaintiff Deadline of July 21, 2025 - RCAT

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Red Cat Holdings, Inc. due to allegations of misleading statements regarding the company's production capacity and contract values, with a deadline for investors to seek lead plaintiff status in a federal securities class action by July 21, 2025 [2][4]. Group 1: Allegations and Misleading Statements - The complaint alleges that Red Cat and its executives violated federal securities laws by making false and misleading statements about the production capacity of the Salt Lake City Facility and the overall value of the SRR Contract [4][6]. - Defendants claimed that the SRR Contract could generate hundreds of millions to over a billion dollars in revenues, which was later contradicted by actual production capabilities [6][12]. - During a conference call on July 27, 2023, it was revealed that the Salt Lake City Facility could only produce 100 drones per month, contrary to earlier claims of thousands [7]. Group 2: Financial Performance and Stock Impact - Following the disclosure of the actual production capacity, Red Cat's stock price fell by $0.10 per share, or 8.93%, closing at $1.02 on July 28, 2023 [8]. - In the first quarter of fiscal year 2025, Red Cat reported losses per share of $0.17, missing estimates by $0.09, and revenue of $2.8 million, missing estimates by $1.07 million [9]. - After a report from Kerrisdale Capital on January 16, 2025, alleging that the SRR Contract was worth only $20 million to $25 million, Red Cat's stock price fell by $2.35 per share, or 21.54%, closing at $8.56 on January 17, 2025 [12][13]. Group 3: Contract and Future Prospects - Red Cat announced on November 19, 2024, that it had won the SRR Contract, with expectations of generating $50 million to $79.5 million in revenue during fiscal year 2025 [11]. - The company has indicated that achieving higher production capacity at the Salt Lake City Facility will require additional capital investments and manufacturing efficiencies [7].