Red Cat Holdings Announces Closing of $30 Million Registered Direct Offering of Common Stock
Red Cat Holdings (RCAT) has successfully closed a $30 million registered direct offering through the sale of 4,724,412 shares of common stock to institutional investors. The offering, which closed on April 11, 2025, will fund general corporate purposes and working capital.
The company reiterates its 2025 guidance of $80-120 million, driven by military contracts including the U.S. Army Short Range Reconnaissance Program and partnership with Palantir Technologies. Red Cat continues to strengthen its leadership team with the addition of Christian Koji Ericson as CFO and Shawn Webb as President of FlightWave Aerospace.
The offering was conducted through Northland Capital Markets as exclusive placement agent and Ladenburg Thalmann as financial advisor, under an effective shelf registration statement.
Red Cat Holdings (RCAT) ha concluso con successo un'offerta diretta registrata da 30 milioni di dollari attraverso la vendita di 4.724.412 azioni ordinarie a investitori istituzionali. L'offerta, chiusa l'11 aprile 2025, finanzierà scopi aziendali generali e capitale circolante.
L'azienda ribadisce la sua previsione per il 2025 di 80-120 milioni di dollari, sostenuta da contratti militari, inclusi il Programma di Ricognizione a Breve Raggio dell'Esercito degli Stati Uniti e la partnership con Palantir Technologies. Red Cat continua a rafforzare il suo team dirigenziale con l'aggiunta di Christian Koji Ericson come CFO e Shawn Webb come Presidente di FlightWave Aerospace.
L'offerta è stata condotta tramite Northland Capital Markets in qualità di agente di collocamento esclusivo e Ladenburg Thalmann come consulente finanziario, sotto un'efficace dichiarazione di registrazione a scaffale.
Red Cat Holdings (RCAT) ha cerrado con éxito una oferta directa registrada de 30 millones de dólares mediante la venta de 4.724.412 acciones ordinarias a inversores institucionales. La oferta, que se cerró el 11 de abril de 2025, financiará propósitos corporativos generales y capital de trabajo.
La compañía reitera su pronóstico para 2025 de 80-120 millones de dólares, impulsado por contratos militares, incluyendo el Programa de Reconocimiento de Corto Alcance del Ejército de EE. UU. y la asociación con Palantir Technologies. Red Cat sigue fortaleciendo su equipo de liderazgo con la incorporación de Christian Koji Ericson como CFO y Shawn Webb como Presidente de FlightWave Aerospace.
La oferta fue realizada a través de Northland Capital Markets como agente de colocación exclusivo y Ladenburg Thalmann como asesor financiero, bajo una declaración de registro de estantería efectiva.
레드 캣 홀딩스 (RCAT)는 기관 투자자에게 4,724,412주의 보통주를 판매하여 3천만 달러 규모의 등록된 직접 공모를 성공적으로 마감했습니다. 이 공모는 2025년 4월 11일에 종료되었으며, 일반 기업 목적과 운영 자본을 위한 자금을 지원할 것입니다.
회사는 미국 육군 단거리 정찰 프로그램 및 Palantir Technologies와의 파트너십을 포함한 군 계약에 의해 추진되는 2025년 예상 수익 8천만-1억 2천만 달러를 재확인합니다. 레드 캣은 CFO로 Christian Koji Ericson을, FlightWave Aerospace의 사장으로 Shawn Webb를 추가하여 리더십 팀을 강화하고 있습니다.
이 공모는 독점 배치 에이전트로 Northland Capital Markets와 재무 고문으로 Ladenburg Thalmann을 통해 진행되었으며, 유효한 선반 등록 성명서에 따라 이루어졌습니다.
Red Cat Holdings (RCAT) a réussi à clôturer une offre directe enregistrée de 30 millions de dollars par la vente de 4 724 412 actions ordinaires à des investisseurs institutionnels. L'offre, qui a été clôturée le 11 avril 2025, financera des objectifs d'entreprise généraux et du fonds de roulement.
L'entreprise réitère son objectif pour 2025 de 80 à 120 millions de dollars, soutenu par des contrats militaires, y compris le Programme de Reconnaissance à Courte Portée de l'Armée des États-Unis et un partenariat avec Palantir Technologies. Red Cat continue de renforcer son équipe de direction avec l'ajout de Christian Koji Ericson en tant que CFO et Shawn Webb en tant que Président de FlightWave Aerospace.
L'offre a été réalisée par le biais de Northland Capital Markets en tant qu'agent de placement exclusif et Ladenburg Thalmann en tant que conseiller financier, sous une déclaration d'enregistrement de type shelf efficace.
Red Cat Holdings (RCAT) hat erfolgreich eine registrierte Direktplatzierung über 30 Millionen Dollar durch den Verkauf von 4.724.412 Stammaktien an institutionelle Investoren abgeschlossen. Die Platzierung, die am 11. April 2025 abgeschlossen wurde, wird allgemeine Unternehmenszwecke und Betriebskapital finanzieren.
Das Unternehmen bekräftigt seine Prognose für 2025 von 80-120 Millionen Dollar, die durch Militärverträge, einschließlich des Kurzstreckenaufklärungsprogramms der US-Armee und der Partnerschaft mit Palantir Technologies, unterstützt wird. Red Cat verstärkt weiterhin sein Führungsteam mit der Ernennung von Christian Koji Ericson als CFO und Shawn Webb als Präsident von FlightWave Aerospace.
Die Platzierung wurde über Northland Capital Markets als exklusiven Platzierungsagenten und Ladenburg Thalmann als Finanzberater unter einer wirksamen Shelf-Registrierungsanmeldung durchgeführt.
- Secured $30 million in funding through institutional investors
- Won exclusive U.S. Army Short Range Reconnaissance Program contract
- Strategic partnership with Palantir Technologies for VNav and Warp Speed systems
- Projects substantial revenue guidance of $80-120 million for 2025
- Strengthened executive team with experienced aerospace industry veterans
- Share dilution from issuance of 4,724,412 new common stock shares
Insights
Red Cat's $30 million capital raise represents a significant financial development for this drone technology company. With the issuance of 4.72 million new shares, this offering expands their float by approximately 5.6% based on their current market cap of
While this dilution impacts existing shareholders, the strategic timing suggests management's confidence in their growth trajectory, as evidenced by their maintained 2025 revenue guidance of
The company's decision to raise capital through institutional investors rather than debt financing maintains financial flexibility while avoiding interest expenses during this growth phase. With new executive talent joining from PwC and AeroVironment, Red Cat appears to be building the financial and operational infrastructure needed to manage rapid expansion.
Most notably, the capital deployment is aligned with concrete revenue drivers - particularly the U.S. Army Short Range Reconnaissance Program contract win and the Palantir Technologies partnership for advanced drone navigation and manufacturing systems. The investment thesis now hinges on management's ability to effectively deploy this capital to capture the projected revenue growth while managing the operational scaling challenges inherent in defense contracting.
Red Cat's position as the sole winner of the U.S. Army Short Range Reconnaissance Program represents a significant competitive advantage in the tactical drone space. This program of record status provides contractual stability and positions the company in the critical military small UAS segment where requirements for trusted domestic suppliers are intensifying.
The strategic partnership with Palantir Technologies integrating their Visual Navigation (VNav) and Warp Speed manufacturing systems addresses two critical aspects of defense drone production: autonomous navigation capabilities and manufacturing efficiency. This technology integration potentially accelerates Red Cat's production capabilities while enhancing drone performance in GPS-denied environments - a critical military requirement.
The addition of Shawn Webb from AeroVironment brings valuable competitive intelligence and program management expertise from one of the defense sector's leading drone manufacturers. His 25 years of aerospace and defense experience should strengthen Red Cat's ability to navigate the complex defense acquisition process and scale production to meet military contract requirements.
The company's focus on multiple product lines (Black Widow, Edge 130, FANG) demonstrates portfolio diversification across different military use cases rather than dependency on a single platform. This capital infusion enables Red Cat to potentially accelerate production capacity at a time when the defense sector is prioritizing unmanned systems, particularly from domestic suppliers, in response to emerging global security challenges.
SAN JUAN, Puerto Rico, April 14, 2025 (GLOBE NEWSWIRE) -- Red Cat Holdings, Inc. (Nasdaq: RCAT) (“Red Cat” or “Company”), a drone technology company integrating robotic hardware and software for military, government, and commercial operations, has successfully closed the previously announced registered direct offering with certain institutional investors for the purchase and sale of 4,724,412 shares of common stock resulting in gross proceeds of approximately
“We believe this financing positions Red Cat for significant growth in the drone industry focused on aerospace and defense technologies, establishing Red Cat as one of the fastest growing drone companies based in the United States,” said Jeff Thompson, Founder, Chairman and Chief Executive Officer of Red Cat.
- Red Cat remains focused in the near term on driving growth through being the previously announced sole winner of the U.S. Army Short Range Reconnaissance (SRR) Program of Record and will continue to grow sales of its Black Widow, Edge 130 and FANG product offerings and invest in new product offerings.
- Red Cat is reiterating its calendar 2025 guidance of
$80 -120 million, driven by military contracts and strategic partnerships, including the recently announced partnership with Palantir Technologies, which integrates Palantir’s Visual Navigation (VNav) and Warp Speed manufacturing operating system. - Red Cat continues to hire strategic talent, most recently adding Christian Koji Ericson as CFO, previously with PricewaterhouseCoopers and Shawn Webb as President of FlightWave Aerospace, leveraging his 25 years of aerospace and defense experience, including a leadership role at AeroVironment (Nasdaq: AVAV), to enhance the company’s military drone production capabilities.
The Company intends to use net proceeds from the offering for general corporate purposes, including working capital.
Northland Capital Markets acted as the exclusive placement agent and Ladenburg Thalmann served as financial advisor for the transaction.
The offering is being made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-283242), which was declared effective by the Securities and Exchange Commission (the “SEC”) on December 11, 2024. A final prospectus supplement and the accompanying prospectus relating to the registered direct offering was filed with the SEC and is available on the SEC's website located at http://www.sec.gov. Additionally, when available, electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained from Northland Securities, Inc., 150 South Fifth Street, Suite 3300, Minneapolis, MN.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Red Cat Holdings, Inc.
Red Cat (Nasdaq: RCAT) is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Through two wholly owned subsidiaries, Teal Drones and FlightWave Aerospace, Red Cat has developed a leading-edge Family of Systems. This includes the flagship Black Widow™, a small unmanned ISR system that was awarded the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record contract. The Family of Systems also includes TRICHON™, a fixed wing VTOL for extended endurance and range, and FANG™, the industry's first line of NDAA compliant FPV drones optimized for military operations with precision strike capabilities. Learn more at www.redcat.red.
Safe Harbor 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. Such statements include, but are not limited to, statements relating to the expected timing of the offering and the satisfaction of customary closing conditions related to the offerings, and our intended use of proceeds from the offering. 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 Form 10-KT filed with the Securities and Exchange Commission on March 31, 2025. 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.
Contact:
INVESTORS:
E-mail: Investors@redcat.red
NEWS MEDIA:
Phone: (347) 880-2895
Email: peter@indicatemedia.com
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