By Ben Glickman
Shares of Red Cat Holdings rose after the company secured a major drone contract with the U.S. Army and inked an expanded partnership with an artificial intelligence company.
The stock was up 40%, to $6.64, in Wednesday afternoon trading. Shares have increased more than sevenfold so far this year.
Red Cat announced on Tuesday that its Teal Drones subsidiary had been selected for the U.S. Army's short-range reconnaissance program. Under the program, the company will supply thousands of small surveillance drones.
Early Wednesday, the company said it had expanded its partnership with Palladyne AI, which develops machine-learning software for robots. The two companies will work together on go-to-market activities for Palladyne's software on Teal's drones.
Red Cat and Palladyne last month said they had partnered to put Palladyne's software into Teal drones. The companies said the software Palladyne Pilot is expected to be available in all Teal drones.
Palladyne shares rose 14%, to $2.05, on Wednesday.
The companies said Palladyne's software is expected to be available for all systems delivered to the army under the contract. Deliveries are expected to begin in 2025.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 20, 2024 14:59 ET (19:59 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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