Drone tech firm Red Cat slides on stock offering plans

Red Cat Holdings

17/09/2025 21:39

** Shares of Red Cat Holdings RCAT.O down 10.2% to $10.12 in extended trading as it looks to raise equity

** San Juan, Puerto Rico-headquartered drone technology firm announces proposed stock offering; deal size not disclosed

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

** Northland Capital Market is sole bookrunner for offering

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

** RCAT shares on Weds ended up 4.1% at $11.27

** YTD, stock down 12%, but was trading around $3 a year ago

:** All 3 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))