Red Cat Holdings, Inc. (RCAT) stock prices surged by 45.40% shortly after market trading commenced on July 13th, 2021, bringing the price per share up to USD$4.32 early on in the trading day.
Merger with Teal Drones
July 13th, 2021 saw the company announce the signing of a definitive agreement that will see RCAT acquire Teal Drones, a frontrunner in the commercial and government unmanned aerial vehicle technology space. The all-stock transaction will add Teal Drones to the company’s portfolio, serving to consolidate the group’s myriad of offerings across the North American market.
Network of Partnerships
Teal will anchor the enterprise group at RCAT holdings, including, but not limited to, Skypersonic, a remote inspection company, as well as Dronebox, an analytics platform for cloud-based flight intelligence. Fat Shark, a drone imaging and communication company, is also included in RCAT’s portfolio, as is Rotor Riot, a lifestyle operation focused on the consumer segment. The company cumulatively presents a complete and varied selection of drone technologies that serve to cater to all the segments in the growing drone industry.
Scope of Collaboration
The inclusion of Teal will facilitate the natural expansion of RCAT deeper into the enterprise and government spaces. The partner’s Golden Eagle drone platform combined with its existing access to the Department of Defense will facilitate the adequate positioning of the company for a continued trajectory of success. Further facilitating this are RCAT’s market reach and market experience.
About Teal
The partnering company was founded in 2015, going on to launch its Teal Sport and Teal One consumer drones, marking the first of their kind to be manufactured in the U.S. Based out of Utah, the company has since expanded into the enterprise and government sectors with the U.S-approved Golden Eagle, which is a drone designed for recon, public safety, and inspection applications. The company’s open and modular platform allows a critical mass of applications to be developed and integrated for cutting-edge capabilities. Teal was one of only five companies selected by the DoD in 2020 as approved small unmanned aerial system vendors for the U.S. government.
Future Outlook for RCAT
Armed with the fortuitous upcoming merger, RCAT is poised to capitalize on the expanded scope of opportunities it finds at its disposal. The company is keen to leverage the additional resources at its disposal in order to facilitate significant and sustained increases in shareholder value over the long term.
