Tiger Brokers

BUZZ-Red Cat plunges after announcing $46.8 million direct stock deal

Reuters
Jun 17
BUZZ-Red Cat plunges after announcing $46.8 million direct stock deal

** Shares of drone technology firm Red Cat RCAT.O plunge 19.5% to $7.40 in early trading

** RCAT enters agreements with certain institutional investors for sale of nearly 6.5 million shares in a registered direct offering for gross proceeds of $46.75 million

** Proceeds will be used for general purposes, including expenditures related to its new unmanned surface vessel division

** Northland Capital Markets was the placement agent for the transaction

** Implied offer price of ~$7.25, which represents 21% discount to stock's last close

** Stock closed up 10.2% at $9.19 on Monday

** All 3 brokerages covering the stock rate "buy" or higher; median PT $13 - data compiled by LSEG

** As of last close, RCAT stock was down 28.5% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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