Red Cat Raises $60M Via Secondary Equity Offering At 37% Discount

Drone technology provider Red Cat Holdings Inc RCAT priced 13.33 million shares at $4.5 per share to raise $60 million in a secondary public offering.
The offer price implies a 36.6% discount to the company's Friday closing price of $7.1.
The offering proceeds will help provide services, sales, marketing efforts for its Red Cat Drone Services, strategic acquisitions, related expenses, and general working capital.
The underwriters have a 45-day option to purchase additional shares up to 2 million.
Red Cat recently agreed to acquire Teal Drones, an automated aerial vehicle technology firm.
Fordham Financial Management, Inc division ThinkEquity is the sole book-running manager for the offering.
Price action: RCAT shares traded lower by 35.9% at $4.55 in the premarket session on the last check Monday.