Red Cat prices $225 million public offering at $9.40 per share

Red Cat Holdings Inc. (NASDAQ: RCAT) announced the pricing of an underwritten public offering of 23,936,171 shares of common stock at $9.40 per share. The drone and robotics solutions provider expects gross proceeds of approximately $225 million before underwriting discounts and other expenses.

The offering is scheduled to close on or about May 14, 2026, subject to customary closing conditions. Red Cat has granted underwriters a 30-day option to purchase up to an additional 3,590,425 shares at the public offering price, less underwriting discounts and commissions.

The company plans to use net proceeds for general corporate purposes and strategic growth initiatives, including acquisitions, business expansion, research and development, capital expenditures and working capital.

Evercore ISI and BofA Securities are serving as joint lead bookrunners for the offering, while Needham & Company and Northland Capital Markets are acting as co-managers.

The shares are being offered through an automatically effective shelf registration statement filed with the Securities and Exchange Commission on May 12, 2026. Red Cat develops drone and robotic solutions for defense and national security through its subsidiaries Teal Drones and FlightWave Aerospace.

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