---
schema_version: "secwatch.filing_event.v1"
accession: "0001554795-21-000323"
form_type: "8-K"
ticker: "RCAT"
cik: "0000748268"
company_name: "Red Cat Holdings, Inc."
filed_at: "2021-09-07T23:59:59+00:00"
generated_at: "2026-06-29T05:39:40.065127+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Red Cat closes acquisition of Teal Drones for $14M in stock; Teal's Golden Eagle is DoD-approved

## Summary
- Acquired Teal for $14M in stock (3,738,911 shares at $2.908 VWAP); net after $1.67M DA4 debt, $771K other, $686K working capital deficit ~$10.87M.
- Teal's Golden Eagle is 1 of 5 drones approved by U.S. DoD for reconnaissance, public safety, inspection; expands military sector presence.
- Earn-out: up to $16M additional shares if Golden Eagle sales reach $36M within 24 months; lower tiers at $24M and $18M.
- George Matus remains CEO of Teal with 1-year employment agreement, $130K base salary (escalators to $170K), and 400K restricted shares vesting over 4 years.
- Teal also entered $1.67M loan with Decathlon Alpha IV at 10% interest, maturing Dec 2024, secured by Teal assets, guaranteed by Red Cat.

## SEC filing metadata
- accession: 0001554795-21-000323
- form_type: 8-K
- ticker: RCAT
- cik: 0000748268
- company_name: Red Cat Holdings, Inc.
- filed_at: 2021-09-07T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 2.01, 2.03, 3.02, 5.02, 7.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/748268/000155479521000323/0001554795-21-000323-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/748268/000155479521000323/rcat0903form8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001554795-21-000323
- JSON: https://secwatch.observer/filing/0001554795-21-000323.json
- Plain text: https://secwatch.observer/filing/0001554795-21-000323.txt

## Key facts
- Executive change
  George Matus was appointed as Chief Executive Officer of Teal at Red Cat Holdings, Inc..
  - Action: appointed
  - Role: Chief Executive Officer of Teal
  source text: On September 1, 2021 the Company and George Matus entered into an employment agreement under which Mr. Matus will serve as Chief Executive Officer of Teal.
  evidence_url: https://www.sec.gov/Archives/edgar/data/748268/000155479521000323/0001554795-21-000323-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.