---
schema_version: "secwatch.filing_event.v1"
accession: "0001554795-22-000390"
form_type: "8-K"
ticker: "RCAT"
cik: "0000748268"
company_name: "Red Cat Holdings, Inc."
filed_at: "2022-11-28T23:59:59+00:00"
generated_at: "2026-06-21T12:53:45.187599+00:00"
event_type: "m_and_a"
sentiment: "positive"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

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

## Summary
- 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.

## SEC filing metadata
- accession: 0001554795-22-000390
- form_type: 8-K
- ticker: RCAT
- cik: 0000748268
- company_name: Red Cat Holdings, Inc.
- filed_at: 2022-11-28T23:59:59+00:00
- event_type: m_and_a
- sentiment: positive
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 1.01, 5.02, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/748268/000155479522000390/0001554795-22-000390-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/748268/000155479522000390/rcat1128form8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001554795-22-000390
- JSON: https://secwatch.observer/filing/0001554795-22-000390.json
- Plain text: https://secwatch.observer/filing/0001554795-22-000390.txt

## Key facts
- Material Agreements
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/748268/000155479522000390/0001554795-22-000390-index.htm

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