secwatch.observer — SEC 8-K summary
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Issuer:     Red Cat Holdings, Inc. (RCAT)
CIK:        0000748268
Form:       8-K
Filed at:   2021-09-07T23:59:59+00:00
Accession:  0001554795-21-000323
Event type: m_and_a
Sentiment:  positive
Materiality: 0.85
Item codes: 2.01, 2.03, 3.02, 5.02, 7.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/748268/000155479521000323/0001554795-21-000323-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/748268/000155479521000323/rcat0903form8k.htm
  HTML page:      https://secwatch.observer/filing/0001554795-21-000323

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer