Drone tech firm Red Cat slides on $150 mln equity raise

Red Cat Holdings

18/09/2025 12:13

** Shares of Red Cat Holdings RCAT.O down 10.1% before the bell to $10.13 after $150 mln follow-on priced

** San Juan, Puerto Rico-headquartered drone technology firm says it sold ~15.6 mln shares at $9.60

** Offering price is 14.8% discount to stock's last close

** It intends to use net proceeds for general and working capital purposes, including expenditures related to its new unmanned surface vessel division

** Northland Capital Markets is sole bookrunner for offering

** Co has 100 mln shares outstanding as of Sept 15, per the offering prospectus, for $1.1 bln market cap

** RCAT shares on Weds rose ~4%, trimming YTD loss to ~12%. The stock closed at $2.90 a year ago

:** The three analysts covering RCAT are bullish and median PT is $15, per LSEG data

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

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