Red Cat Holdings Closes $46.75M Stock Offering for USV Expansion

Red Cat Holdings, a drone technology company serving military, government, and commercial sectors, completed a registered direct offering raising approximately $46.75 million by selling 6,448,276 shares of common stock to institutional investors. The proceeds will support general corporate purposes, including operating expenditures for its newly formed unmanned surface vessel (USV) division, marking a strategic expansion into maritime autonomous systems. The company has also increased manufacturing capacity by relocating Edge 130 production to a larger facility with a target of 150 units monthly and aims to double Black Widow drone production to 1,000 units per month. Red Cat reiterated its 2025 revenue guidance of $80 to $120 million, with projected sales breakdowns across its Black Widow variants, Edge 130, and Fang FPV drones. The transaction was facilitated by Northland Capital Markets as the exclusive placement agent and Ladenburg Thalmann as financial advisor, reflecting strong market confidence despite potential dilution for existing shareholders. Analysts maintain a positive outlook on Red Cat’s growth trajectory, supported by the company’s expanding product portfolio and strategic advancements.