Red Cat Closes Acquisition of FlightWave Aerospace Systems

Rhea-AI Summary

Red Cat Holdings, Inc. (Nasdaq: RCAT) has closed its acquisition of FlightWave Aerospace Systems , expanding its drone technology portfolio for military and government operations. The acquisition brings the Edge 130 Blue, a Blue UAS approved military-grade tricopter, into Red Cat's family of unmanned systems.

Key highlights:

• The Edge 130 Blue completes Red Cat's Family of Systems
• Manufacturing ramp-up to begin this quarter
• Edge 130 Blue offers long-range mapping, inspection, surveillance, and reconnaissance capabilities
• Weighing 1200g, it can be assembled and launched in one minute
• Industry-leading endurance of up to 2 hours in certain configurations

This acquisition aligns with Red Cat's mission to redefine the role of sUAS for defense applications, combining ISR capabilities with precision strike payloads.

Positive

• Acquisition of FlightWave expands Red Cat's product range and opens new revenue streams
• Edge 130 Blue completes Red Cat's Family of Systems, enhancing their military drone offerings
• Manufacturing ramp-up of Edge 130 Blue to begin this quarter, potentially boosting production and sales
• Edge 130 Blue's unique features (quick assembly, long endurance) may provide a competitive advantage in the military drone market

Negative

• None.

The Edge 130 Blue Propels Red Cat into a New Defense and Military growth opportunity

SAN JUAN, Puerto Rico, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, today announced the closing of its acquisition of FlightWave Aerospace Systems Corporation (“FlightWave”), an industry-leading provider of VTOL drone, sensor and software solutions. The acquisition officially brings the Edge 130, FlightWave’s Blue UAS approved military-grade tricopter, into Red Cat’s family of low-cost, portable unmanned reconnaissance and precision lethal strike systems.

“Today marks a transformative milestone for Red Cat and our goal to provide warfighters with a diverse set of rucksack portable drones required for mission effectiveness on today’s evolving battlefield,” said Jeff Thompson, Red Cat CEO. “The acquisition of FlightWave broadens our range of drone products and opens up an entirely new revenue stream. The FlightWave Edge 130 Blue completes our Family of Systems and we will begin ramping manufacturing this quarter.”

Red Cat’s mission is to redefine the role of sUAS for defense applications by combining the capabilities of ISR drones with precision strike payloads. The company is an established leader in the sUAS (Group 1) space with its flagship Teal 2 aircraft. Red Cat is adding FlightWave’s Edge 130 to its larger family of systems, alongside a new line of FANG™ First-Person View (FPV) drones with precision strike payload capabilities that are all deployable in air, land, sea, and sub-sea environments.

The Edge 130 Blue is a UAS Certified military-grade tricopter for long-range mapping, inspection, surveillance, and reconnaissance needs. Designed specifically for government and military applications, the Edge 130 Blue can be assembled and hand-launched in just one minute by a single user to capture high-accuracy aerial imagery with long-range autonomy. Weighing in at only 1200g, the Edge 130 has been flown for up to 2 hours in certain configurations in forward flight mode, an industry-leading endurance among all other Blue UAS-approved drones available.

About Red Cat, Inc.  
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Red Cat’s solutions are designed to “Dominate the Night™” and include the Teal 2, a small unmanned system offering the highest-resolution thermal imaging in its class. Learn more at www.redcat.red.

About FlightWave
FlightWave Aerospace Systems Corporation is an industry leading manufacturer of dual-use VTOL drones, sensors and software solutions located in Santa Monica, CA. FlightWave designs and manufactures the Edge 130 VTOL drone and payload cameras for the commercial, defense, security, and intelligence markets. The fully-autonomous Edge 130 sUAS has the best flight endurance in the industry and with AI edge compute capabilities, provides superior aerial data capture to both the commercial and defense markets.

Forward-Looking Statements 
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Red Cat Holdings, Inc.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled "Risk Factors" in the final prospectus related to the public offering filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Red Cat Holdings, Inc. undertakes no duty to update such information except as required under applicable law. 

Contacts:

INVESTORS:
E-mail: Investors@redcat.red

NEWS MEDIA: Indicate Media
Phone: (347) 880-2895
Email: peter@indicatemedia.com

FAQ

What is the significance of Red Cat's acquisition of FlightWave Aerospace Systems?

The acquisition brings the Edge 130 Blue, a military-grade tricopter, into Red Cat's product lineup, completing their Family of Systems and expanding their offerings for defense and military applications. This move is expected to open up new revenue streams and enhance Red Cat's position in the military drone market.

What are the key features of the Edge 130 Blue drone acquired by Red Cat (RCAT)?

The Edge 130 Blue is a UAS Certified military-grade tricopter designed for long-range mapping, inspection, surveillance, and reconnaissance. It weighs 1200g, can be assembled and launched in one minute, and offers industry-leading endurance of up to 2 hours in certain configurations.

How does the FlightWave acquisition align with Red Cat's (RCAT) business strategy?

The acquisition aligns with Red Cat's mission to redefine the role of small unmanned aerial systems (sUAS) for defense applications. It allows Red Cat to combine ISR (Intelligence, Surveillance, and Reconnaissance) capabilities with precision strike payloads, enhancing their offerings for military and government operations.

When will Red Cat (RCAT) begin manufacturing the newly acquired Edge 130 Blue drone?

According to the press release, Red Cat will begin ramping up manufacturing of the Edge 130 Blue drone in the current quarter following the closure of the FlightWave acquisition.