Drone tech co Red Cat tumbles on $200 mln stock offering

Red Cat Holdings

12/05/2026 21:32

** Shares of drone technology firm Red Cat Holdings RCAT.O down 9% at $10.04 post-market as it seeks equity

** Salt Lake City, Utah-based co announces $200 mln stock offering

** Intends to use net offering proceeds for general corp purposes, continued acceleration of growth initiatives, including acquisitions or business expansion, R&D, among other purposes

** Evercore and BofA joint lead bookrunners

** RCAT stock closed down 2% at $11.03 on Tues, reducing YTD gain to ~39%

** With ~122.7 mln shares outstanding, co has roughly $1.4 bln market cap

** Of 4 analysts covering RCAT, 1 rates "strong buy", 3 rate "buy"; median PT $20, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))