secwatch.observer — SEC 8-K summary
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Issuer:     Red Cat Holdings, Inc. (RCAT)
CIK:        0000748268
Form:       8-K
Filed at:   2024-11-27T23:59:59+00:00
Accession:  0001554795-24-000325
Event type: debt
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 3.02
LLM model:  deepseek-v4-flash:cloud@v2

Red Cat receives $6M from Lind via $7.2M convertible note and warrants
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- Net $6M funding ($210k commitment fee deducted) in exchange for a $7.2M senior secured convertible note and a 5-year warrant for 326,000 shares at $9.20.
- Note bears no interest; repaid in 18 monthly installments of $400k starting six months post-issuance.
- Repayment optional in cash (1.025x) or shares valued at 90% of the 5 lowest VWAPs over 20 trading days (floor $0.75).
- Conversion price $9.20; on prepayment, Lind may convert up to 25% of principal at lower of formula price or conversion price.
- Additional warrant: 326,000 shares at $9.20, exercisable for 5 years; registration of underlying shares required within 5 days.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/748268/000155479524000325/0001554795-24-000325-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/748268/000155479524000325/rcat1127form8k.htm
  HTML page:      https://secwatch.observer/filing/0001554795-24-000325

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