Red Cat Holdings Inc. (RCAT) shares plunged 23.80% in after-hours on Friday, July 16, 2021, and closed the weekly trading at $5.41 per share. In the morning session on Friday, RCAT’s stock gained 41.15% to close Friday’s session at $7.10. RCAT shares have risen 472.58% over the last 12 months, and they have moved up 136.67% in the past week. Over the past three months, the stock has gained 68.65%, while over the past six months, it has lost 149.12%.
Let’s see why RCAT stock plummeted in the after-hours on Friday?
Pricing of Public Offering of Common stock
On July 18, 2021, Red Cat Holdings, Inc announced the pricing of its underwritten public offering of 13,333,334 shares of its common stock at a public offering price of $4.50 per share.
Underwriters will get a 45-day option to purchase up to an additional 2,000,000 shares. The company will get gross proceeds of approximately $60,000,000and will use it for services, sales, and marketing efforts for its Red Cat Drone Services, strategic acquisitions, and related expenses, and general working capital.
Acquisition of Teal Drones
On July 13, 2021, Red Cat Holdings, Inc signed a definitive agreement to acquire Teal Drones, a leader in commercial and government unmanned aerial vehicle technology. The all-stock transaction will add Teal Drones to Red Cat’s portfolio and strengthen the group’s spectrum of offerings across North America.
New CEO changing the RCAT business strategy
On June 9, 2021, Red Cat Holdings, Inc announced that it was establishing Enterprise and Consumer segments to sharpen the Company’s focus on the unique opportunities in each sector of the drone industry. This development represents the first action taken by the Company’s newly appointed Chief Operating Officer, Dr. Allan Evans.
Inauguration on Russell Microcap Index
Red Cat Holdings, Inc joined the Russell Microcap Index after the 2021 annual reconstitution, effective after the US market opened on June 28, according to a preliminary list of additions posted by FTSE Russell on Friday, June 4, 2021.
On June 4, 2021, Red Cat Holdings, Incappointed Dr. Allan Evans, as Chief Operating Officer of Red Cat, where he will oversee operations for all four subsidiaries.
Skypersonic Acquisition completed
On May 11, 2021, Red Cat Holdings, Inc completed the acquisition of Skypersonic which enables drones to “Fly Anywhere” and “Inspect the Impossible”. Its Skyloc software system allows a drone to complete inspection services in locations where GPS is not available, yet still record and transmit inspection data even while being operated from thousands of miles away. Skycopter is a miniature drone fitted into a cage to avoid damage to inspected areas and the drone and is ideally suited for environments where a manual inspection is not practical or possible.
The RCAT stock jumped on the Friday morning when the company announced the public offering of its common stock but plummeted in the after-hours when the company revealed the pricing of public offering of its common stock. We are not sure how RCAT stock will commence the new week on Monday.