Red Cat Holdings Inc (RCAT) has released an update.
Red Cat Holdings, Inc. has finalized the sale of its consumer drone subsidiaries, Rotor Riot and Fat Shark, to Unusual Machines, Inc. for $20 million, incorporating cash, a promissory note, and a significant stake in UMAC’s common stock. The deal aligns with the company’s strategic pivot towards specializing in advanced drone technology for military and commercial uses. Shareholders approved the sale, which was supported by an independent valuation, and it coincided with UMAC’s IPO. Additionally, non-competition agreements were established to prevent the sale of certain drones to governmental authorities, ensuring Red Cat Holdings’ focus on this market segment remains unchallenged.
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