Red Cat signs deal to sell consumer drone business for $18M; focuses on military

Red Cat Holdings, Inc.

Unusual Machines to pay $18M: $5M cash, $2.5M convertible note, $10.5M Series A preferred.
Deal requires Red Cat shareholder approval, UM IPO of at least $15M, and Nasdaq listing.
Divestiture lets Red Cat focus on military ISR drones, Golden Eagle, and swarm software.
Mary Beth Long appointed to Audit Committee effective Nov 21, 2022.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Red Cat Holdings, Inc. entered into Stock Purchase Agreement with Unusual Machines, Inc. and Jeffrey Thompson valued at $18 million (effective 2022-11-21).

Action: entry
Agreement: asset purchase
Counterparty: Unusual Machines, Inc. and Jeffrey Thompson
Value: $18 million
Effective: 2022-11-21

Exact text from the filing

Under the terms of the SPA, upon satisfaction of closing conditions including the affirmative vote of the shareholders of the Company, UM will purchase Rotor Riot, LLC, an Ohio limited liability company (“ RR ”), and Fat Shark Holdings, Ltd., a Nevada corporation (“ FS ”), for $18 million in cash and securities of UM, as more fully-described below.

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Red Cat Holdings, Inc. filing history →

Source: SEC EDGAR

accession 0001554795-22-000390

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