---
schema_version: "secwatch.filing_event.v1"
accession: "0001554795-24-000026"
form_type: "8-K/A"
ticker: "RCAT"
cik: "0000748268"
company_name: "Red Cat Holdings, Inc."
filed_at: "2024-03-01T23:59:59+00:00"
generated_at: "2026-06-05T05:52:15.511654+00:00"
event_type: "m_and_a"
sentiment: "neutral"
materiality_score: 0.8
calibrated_materiality_score: 0.8
confidence: "high"
source: SEC EDGAR
---

# Red Cat closes sale of consumer division to Unusual Machines for $20M; corrects Thompson stake

## Summary
- Total consideration: $1M cash, $2M 8% promissory note (18-month term), and $17M UMAC stock (4.25M shares, ~48.66% of UMAC).
- Red Cat exited consumer drones (Rotor Riot, Fat Shark); will focus exclusively on military/government drone tech (Teal Drones).
- 5-year non-compete bars UMAC from selling Group 1/2 UAVs to government customers; referral revenue share of 10% for Teal.
- Amendment corrects Jeffrey Thompson's UMAC ownership to 328,500 shares (3.76%) from previously reported 1,557,000.
- UMAC must register 500,000 shares for resale within 120 days of IPO registration effectiveness.

## SEC filing metadata
- accession: 0001554795-24-000026
- form_type: 8-K/A
- ticker: RCAT
- cik: 0000748268
- company_name: Red Cat Holdings, Inc.
- filed_at: 2024-03-01T23:59:59+00:00
- event_type: m_and_a
- sentiment: neutral
- materiality_score: 0.8
- calibrated_materiality_score: 0.8
- confidence: high
- sec_items: 2.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/748268/000155479524000026/0001554795-24-000026-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/748268/000155479524000026/rcat0301form8ka.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001554795-24-000026
- JSON: https://secwatch.observer/filing/0001554795-24-000026.json
- Plain text: https://secwatch.observer/filing/0001554795-24-000026.txt

## Key facts
- M&A Transactions
  Red Cat Holdings, Inc. completed a disposition involving Unusual Machines, Inc. for $20 million (closed 2024-02-16).
  - Action: disposition
  - Counterparty: Unusual Machines, Inc.
  - Consideration: $20 million
  - Closing: 2024-02-16
  source text: Advisors, Inc. Consideration for Sale of Consumer Division Under the SPA The total consideration received by the Company for its sale of Rotor Riot and Fat Shark was valued at $20 million, and consisted of the following elements: · $1 million in cash, which was paid from the proceeds of UMAC’s initial public offering; · $2 million in the form of a promissory note
  evidence_url: https://www.sec.gov/Archives/edgar/data/748268/000155479524000026/0001554795-24-000026-index.htm

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