Stock market announcement: Red Cat Holdings intends public share selling; equity decreases by 10%
Red Cat Holdings, the NASDAQ-listed drone technology company, has announced an underwritten public offering of shares of common stock.
According to a press release, the company is planning to offer a certain number of shares of its common stock to the public. The exact number of shares and the price range for the offering have not been disclosed yet. However, Red Cat Holdings has given underwriters a 30-day option to purchase up to an additional 15% of the offered shares.
The proceeds from the offering will be used for general corporate purposes, including working capital, operating costs, and investments in the company's new unmanned surface vessel division.
In other news, Red Cat Holdings has secured NATO approval for its drones, marking a significant milestone for the company. This approval could potentially open up new opportunities for Red Cat Holdings in the defence sector.
The company's shares saw a decrease of 9.9% post-market on Wednesday, but the specific reason for this drop remains unclear. The press release does not specify the name of the person at Red Cat Holdings who made the decision to sell company shares in the public offering.
The drone industry is experiencing a surge in demand, with the U.S. government easing its export policy for drones to boost competitiveness. If DJI, a major player in the drone market, is banned next year, Red Cat Holdings could potentially gain $160 million per year.
Recently, the SA Roundtable discussed defence stocks as potential buys, with Red Cat Holdings as a possible option. The growing demand for drones and the company's recent achievements make Red Cat Holdings an interesting investment opportunity for many.
As always, potential investors are advised to do their own research and consult with a financial advisor before making any investment decisions.
