Overview
- Red Cat set the price for a public stock offering at $9.40 per share, selling 23,936,171 shares for expected gross proceeds of about $225 million.
- Underwriters received a 30-day option to buy up to 3,590,425 additional shares at the same price, which can expand the deal if demand is strong.
- The company said it will use the money for general corporate needs and growth plans that include acquisitions, research and development, equipment, and working capital.
- Shares traded lower before the opening bell after the pricing, and the offer price sat about 15% below the prior close, reflecting investor concern about dilution.
- The sale runs off an automatically effective SEC shelf registration, with Evercore ISI and BofA Securities leading the books and Needham and Northland as co-managers.