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Red Cat Raises Up to $20 Million in Debt Financing
RCATRed Cat (RCAT) GlobeNewswire·2025-02-12 18:00

Core Viewpoint - Red Cat Holdings, Inc. has secured initial debt financing of 16.5millionandisapplyingforanadditional16.5 million and is applying for an additional 58 million from the Department of Defense Office of Strategic Capital to enhance its drone technology capabilities for military and commercial applications [1][2][3]. Financing Details - The company has entered into an agreement for up to 20millionindebtfinancingwithTheLindPartners,withtheinitialtrancheof20 million in debt financing with The Lind Partners, with the initial tranche of 16.5 million already closed [1][3]. - The total potential financing from the Department of Defense could reach 93million,whichisconsideredalow−dilutionoptionforshareholders[3].ProductDevelopment−ThefundingwillbeutilizedtoscaleupproductionandcontinuethedevelopmentoftheArachnidFamilyofSystems,whichincludestheBlackWidow™,Edge130,andthenewFANG™First−PersonView(FPV)drones[2][3].−TheFamilyofSystemsaimstofulfilltherequirementsoftheU.S.DepartmentofDefenseandNATOAlliesforaffordable,portable,andfield−repairabledronesystems[2].CompanyOverview−RedCatHoldings,Inc.specializesindronetechnology,integratingrobotichardwareandsoftwareformilitary,government,andcommercialoperations[1][3].−Thecompanyoperatesthroughtwosubsidiaries,TealDronesandFlightWaveAerospace,andhasdevelopedvariousdronesystems,includingtheBlackWidow™,whichispartoftheU.S.Army′sShortRangeReconnaissanceProgram[3].AboutTheLindPartners−TheLindPartnersisaninstitutionalfundmanagerthatprovidesgrowthcapitaltosmall−andmid−capcompanies,havingcompletedover150directinvestmentstotalingmorethan93 million, which is considered a low-dilution option for shareholders [3]. Product Development - The funding will be utilized to scale up production and continue the development of the Arachnid Family of Systems, which includes the Black Widow™, Edge 130, and the new FANG™ First-Person View (FPV) drones [2][3]. - The Family of Systems aims to fulfill the requirements of the U.S. Department of Defense and NATO Allies for affordable, portable, and field-repairable drone systems [2]. Company Overview - Red Cat Holdings, Inc. specializes in drone technology, integrating robotic hardware and software for military, government, and commercial operations [1][3]. - The company operates through two subsidiaries, Teal Drones and FlightWave Aerospace, and has developed various drone systems, including the Black Widow™, which is part of the U.S. Army's Short Range Reconnaissance Program [3]. About The Lind Partners - The Lind Partners is an institutional fund manager that provides growth capital to small- and mid-cap companies, having completed over 150 direct investments totaling more than 1.5 billion since 2011 [4].