Red Cat Stock Sinks as Discounted $225 Million Sale Tests Drone Boom Thesis
Red Cat priced 23.94 million new shares at $9.40, raising about $225 million and sending RCAT down 12% in premarket trading. The new shares represent nearly 20% dilution for existing holders. Q1 revenue surged 849% to $15.5 million, but the company posted a $26.6 million net loss and used $31.9 million in operating cash. Proceeds are for general corporate purposes, not a specific project.