** Red Cat Holdings' RCAT.O shares down 7.5% premarket to $6.89 after equity raise news

** San Juan, Puerto Rico-based drone technology co announces sale of ~4.7 mln shares directly to certain institutional investors for $30 mln gross proceeds

** Offering price of $6.35 represents ~15% discount to stock's last close

** Co intends to use net proceeds for general purposes, including working capital

** With ~85.6 mln shares outstanding, co has ~$638 mln market cap, per LSEG data

** In Nov, its flagship Black Widow drones were selected for the U.S. Army's short-range reconnaissance program

** RCAT shares closed at $4.90 on Nov 18, the day before co announced the Army contract win

** Through Weds close, shares off 42% YTD

** Northland Capital sole placement agent for the direct stock offering

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))