---
schema_version: "secwatch.filing_event.v1"
accession: "0001683168-24-001122"
form_type: "8-K"
ticker: "UMAC"
cik: "0001956955"
company_name: "Unusual Machines, Inc."
filed_at: "2024-02-22T23:59:59+00:00"
generated_at: "2026-06-05T21:01:50.489079+00:00"
event_type: "m_and_a"
sentiment: "neutral"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Unusual Machines completes $20M acquisition of Fat Shark and Rotor Riot from Red Cat

## Summary
- Total consideration of $20M: $1M cash, $2M promissory note (8% interest, 18-month), $17M in stock (4.25M shares).
- Red Cat now owns 48.66% of Unusual Machines post-closing; shares subject to 180-day lock-up.
- Fat Shark and Rotor Riot had combined historical revenue of $5.8M for 12 months ending April 30, 2023 (+26.1% YoY).
- Note bears 8% interest payable monthly; principal due at 18 months; convertible upon default.
- Non-compete restricts Unusual Machines from selling certain drones to government entities for five years.

## SEC filing metadata
- accession: 0001683168-24-001122
- form_type: 8-K
- ticker: UMAC
- cik: 0001956955
- company_name: Unusual Machines, Inc.
- filed_at: 2024-02-22T23:59:59+00:00
- event_type: m_and_a
- sentiment: neutral
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 2.01, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1956955/000168316824001122/0001683168-24-001122-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1956955/000168316824001122/umac_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001683168-24-001122
- JSON: https://secwatch.observer/filing/0001683168-24-001122.json
- Plain text: https://secwatch.observer/filing/0001683168-24-001122.txt

## Key facts
- M&A Transactions
  Unusual Machines, Inc. completed an acquisition involving Red Cat Holdings, Inc. for $20 million (closed 2024-02-16).
  - Action: acquisition
  - Counterparty: Red Cat Holdings, Inc.
  - Consideration: $20 million
  - Closing: 2024-02-16
  source text: On February 16, 2024 (the "Closing Date"), Unusual Machines, Inc. (the "Company") acquired 100% of the equity of Fat Shark Holdings Ltd ("Fat Shark") and Rotor Riot LLC ("Rotor Riot") from Red Cat Holdings, Inc. ("Red Cat") in exchange for $20 million (the "Purchase Price") comprised of (i) $1.0 million in cash, (ii) a $2.0 million promissory note (the "Note") issued by the Company to Red Cat on the Closing Date, and (iii) $17.0 million of the Company’s common stock
  evidence_url: https://www.sec.gov/Archives/edgar/data/1956955/000168316824001122/0001683168-24-001122-index.htm

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