Red Cat sells shares to further fund company growth

The drone tech company announced Monday that it has excised 750,000 outstanding warrants on its stock, which will bring in nearly $5 million in new funding.

Bringing in $4.875 million, to be more precise, the exercise allows Red Cat to secure fresh capital without needing to further dilute its stake in the company. That fresh cash can be used to speed up its expansion into the ever-growing defense drone market, of which it is a major player.

“This additional $4.875 million in funding extends our runway and enables us to pursue other non-dilutive capital opportunities,” Jeff Thompson, Red Cat CEO, said in a statement. “Over the past few weeks, we have streamlined our cap table by paying off debt and removing warrants. This also allows us to accelerate hiring for our new production facility in Long Beach.”

Red Cat has seen great success with its Teal 2 drone, inking deals with the US Air Force, Customs and Border Protection, and NATO allies. Having one of the best thermal sensors on the market while also being on the BlueUAS list has given it priority in the national defense space that civil drone leaders like DJI and Autel can’t compete with.

The company has also expanded its lineup with the acquisition of FlightWave, another Blue UAS provider that has begun to rack up contracts for its Edge 130 drone.

As money from private investors and governments worldwide floods into the industry, companies like Red Cat stand to become massive players in what will become the future of how wars are waged.