RCAT · Red Cat Holdings, Inc.

On May 12, 2026, Red Cat Holdings, Inc. entered into an underwriting agreement with Evercore Group L.L.C. and BofA Securities, Inc., as representatives of the underwriters, to sell 23,936,171 shares of common stock at $9.40 per share. The offering closed on May 14, 2026, generating gross proceeds of approximately $225.0 million before underwriting fees and expenses. The underwriters have a 30-day option to purchase up to an additional 3,590,425 shares. The company intends to use the net proceeds for general corporate purposes and to accelerate strategic growth initiatives, including acquisitions, business expansion, research and development, capital expenditures, and working capital. The shares were sold pursuant to an automatically effective shelf registration statement on Form S-3ASR filed on May 12, 2026. This capital raise significantly strengthens Red Cat's balance sheet, providing substantial funding to support its growth strategy in the defense and national security drone market.