By Chris Wack
Red Cat Holdings were 17% lower, at $6.15, after the company entered into securities purchase agreements with certain institutional investors for the purchase and sale of 4.7 million shares in a registered direct offering.
The drone technology company said the offering is expected to result in proceeds of $30 million, before deducting placement agent fees and other offering expenses.
The offering is expected to close on or about Friday, subject to the satisfaction of customary closing conditions.
Red Cat intends to use proceeds from the offering for general corporate purposes, including working capital.
The stock closed Wednesday's session 13% higher, and is 580% higher in the past 12 months.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
April 10, 2025 10:35 ET (14:35 GMT)
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