Red Cat Raises Up to $20 Million in Debt Financing
Red Cat Holdings (NASDAQ: RCAT) has secured up to $20 million in debt financing through an agreement with The Lind Partners, with an initial tranche of $16.5 million already closed. The debt financing is convertible at $16.15 share price and includes 1 million warrants exercisable at $15.00 per share non-cashless.
Additionally, the company has applied for $58 million in debt financing from the Department of Defense Office of Strategic Capital (OSC). The combined potential financing of $93 million will be used to scale up production and continue development of its Arachnid Family of Systems, including Black Widow™, Edge 130, and FANG™ First-Person View drones. These systems are designed to provide low-cost, portable, field repairable, and recoverable drone solutions for the U.S. Department of Defense and NATO Allies.
Red Cat Holdings (NASDAQ: RCAT) ha ottenuto fino a 20 milioni di dollari in finanziamenti tramite un accordo con The Lind Partners, con una tranche iniziale di 16,5 milioni di dollari già chiusa. Il finanziamento è convertibile a un prezzo per azione di 16,15 dollari e include 1 milione di warrant esercitabili a 15,00 dollari per azione, non cashless.
Inoltre, l'azienda ha fatto richiesta di 58 milioni di dollari in finanziamenti dal Department of Defense Office of Strategic Capital (OSC). Il finanziamento potenziale combinato di 93 milioni di dollari sarà utilizzato per aumentare la produzione e continuare lo sviluppo della sua Arachnid Family of Systems, inclusi i droni Black Widow™, Edge 130 e FANG™ First-Person View. Questi sistemi sono progettati per fornire soluzioni di droni a basso costo, portatili, riparabili sul campo e recuperabili per il Dipartimento della Difesa degli Stati Uniti e gli alleati della NATO.
Red Cat Holdings (NASDAQ: RCAT) ha asegurado hasta 20 millones de dólares en financiamiento de deuda a través de un acuerdo con The Lind Partners, con una tranche inicial de 16,5 millones de dólares ya cerrada. El financiamiento de deuda es convertible a un precio de 16,15 dólares por acción e incluye 1 millón de warrants ejercitables a 15,00 dólares por acción, no cashless.
Adicionalmente, la empresa ha solicitado 58 millones de dólares en financiamiento de deuda del Department of Defense Office of Strategic Capital (OSC). El financiamiento potencial combinado de 93 millones de dólares se utilizará para aumentar la producción y continuar el desarrollo de su Arachnid Family of Systems, incluidos los drones Black Widow™, Edge 130 y FANG™ First-Person View. Estos sistemas están diseñados para proporcionar soluciones de drones de bajo costo, portátiles, reparables en el campo y recuperables para el Departamento de Defensa de EE. UU. y los aliados de la OTAN.
레드 캣 홀딩스 (NASDAQ: RCAT)는 린드 파트너스(The Lind Partners)와의 계약을 통해 최대 2천만 달러의 부채 자금을 확보했으며, 초기 분할금으로 1,650만 달러가 이미 마감되었습니다. 이 부채 자금은 주당 16.15달러의 가격으로 전환 가능하며, 현금 없이 행사 가능한 150만 개의 워런트가 포함되어 있습니다.
또한, 이 회사는 국방부 전략 자본 사무소 (OSC)로부터 5,800만 달러의 부채 자금을 신청했습니다. 총 9,300만 달러의 잠재적 자금은 생산을 확대하고 Black Widow™, Edge 130, FANG™ 1인칭 뷰 드론을 포함한 Arachnid Family of Systems의 개발을 계속하는 데 사용될 것입니다. 이 시스템은 미국 국방부와 NATO 동맹국을 위한 저비용, 휴대 가능, 현장에서 수리 가능하고 복구 가능한 드론 솔루션을 제공하도록 설계되었습니다.
Red Cat Holdings (NASDAQ: RCAT) a sécurisé jusqu'à 20 millions de dollars de financement par emprunt grâce à un accord avec The Lind Partners, avec une première tranche de 16,5 millions de dollars déjà clôturée. Le financement par emprunt est convertible à un prix de 16,15 dollars par action et inclut 1 million de bons de souscription exerçables à 15,00 dollars par action, non cashless.
De plus, l'entreprise a demandé 58 millions de dollars de financement par emprunt auprès du Department of Defense Office of Strategic Capital (OSC). Le financement potentiel combiné de 93 millions de dollars sera utilisé pour augmenter la production et poursuivre le développement de sa Arachnid Family of Systems, y compris les drones Black Widow™, Edge 130 et FANG™ First-Person View. Ces systèmes sont conçus pour fournir des solutions de drones à faible coût, portables, réparables sur le terrain et récupérables pour le Département de la Défense des États-Unis et les alliés de l'OTAN.
Red Cat Holdings (NASDAQ: RCAT) hat bis zu 20 Millionen Dollar an Fremdfinanzierung durch eine Vereinbarung mit The Lind Partners gesichert, wobei eine erste Tranche von 16,5 Millionen Dollar bereits abgeschlossen ist. Die Fremdfinanzierung ist bei einem Preis von 16,15 Dollar pro Aktie wandelbar und umfasst 1 Million Warrants, die nicht cashless zu einem Preis von 15,00 Dollar pro Aktie ausgeübt werden können.
Zusätzlich hat das Unternehmen 58 Millionen Dollar an Fremdfinanzierung beim Department of Defense Office of Strategic Capital (OSC) beantragt. Die kombinierte potenzielle Finanzierung von 93 Millionen Dollar wird verwendet, um die Produktion zu steigern und die Entwicklung der Arachnid Family of Systems, einschließlich der Drohnen Black Widow™, Edge 130 und FANG™ First-Person View, fortzusetzen. Diese Systeme sind darauf ausgelegt, kostengünstige, tragbare, vor Ort reparierbare und wiederherstellbare Drohnenlösungen für das US-Verteidigungsministerium und NATO-Verbündete bereitzustellen.
- Secured $16.5M initial tranche of debt financing with potential for up to $20M total
- Applied for additional $58M in debt financing from Department of Defense OSC
- Financing structure is minimally dilutive to shareholders
- Funds will support production scaling and development of military drone systems
- Debt financing includes convertible features that could lead to future dilution
- OSC financing application of $58M is pending approval with no guarantee of success
Insights
The announced financing package represents a strategic masterclass in capital structure optimization. The $20M agreement with Lind Partners, with $16.5M already secured, provides immediate working capital while the additional $58M application with the DoD's Office of Strategic Capital positions Red Cat for substantial growth with minimal dilution.
The convertible debt terms are particularly noteworthy. The $16.15 conversion price represents a significant premium to current trading levels, indicating strong confidence in Red Cat's growth trajectory. The inclusion of 1 million warrants at $15.00 provides additional upside potential while being structured as non-cashless, ensuring the company receives full proceeds upon exercise.
The potential qualification for the OSC program is particularly significant. The OSC's focus on critical technology areas for national security suggests Red Cat's drone technology aligns with strategic defense priorities. This validation could lead to preferential access to defense contracts and establish Red Cat as a key player in the military drone supply chain.
The company's focus on the Arachnid Family of Systems, including Black Widow™ and Edge 130, addresses a critical market need for low-cost, field-repairable drone systems. The financing structure enables rapid scaling of production capacity while maintaining financial flexibility. The emphasis on NATO-compatible systems opens up significant international market opportunities beyond U.S. defense contracts.
The total potential financing of $93 million through debt instruments represents an optimal capital structure solution. By avoiding equity issuance at current market prices, Red Cat preserves shareholder value while securing the capital needed for expansion. This approach is particularly advantageous in the current market environment where cost of capital considerations are paramount.
Applies for
SAN JUAN, Puerto Rico, Feb. 12, 2025 (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 it has entered into an agreement for up to
- Debt Financing convertible at
$16.15 share price - Initial Tranche proceeds of
$15 million - 1 million warrants exercisable at
$15.00 per share non cashless
Additionally, Red Cat has applied for
- Seed Areas of Emerging Opportunity
- Effective Adoption Areas
- Defense-Specific Areas
The investment is expected to provide Red Cat with the working capital needed to scale up production and the ongoing development of its Arachnid Family of Systems, which includes Black Widow™, Edge 130, and a new line of FANG™ First-Person View (FPV) drones. The goal of the Family of Systems is to meet the needs of the U.S. Department of Defense and NATO Allies for drone systems that are low-cost, portable, field repairable, and recoverable.
“The recent financing will allow us to expedite and expand the Edge 130 factory and build-out and ramp up mass production of the Black Widow,” said Jeff Thompson. Red Cat CEO. “As a company focused on technology that advances the Department of Defense capabilities, we are a strong candidate for the Office of Strategic Capital's low-cost debt program. The potential total financing of
About Red Cat, 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 Family of Systems. This includes the 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.
About The Lind Partners
The Lind Partners manages institutional funds that are leaders in providing growth capital to small- and mid-cap companies publicly traded in the US, Canada, Australia and the UK. Lind's funds make direct investments ranging from US
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
How much debt financing did Red Cat (RCAT) secure from The Lind Partners?
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