Shares of Red Cat Holdings Inc. (RCAT) plunged 23.80% after hours on Friday July 16, 2021 and closed weekly trading at $ 5.41 per share. In Friday’s morning session, RCAT stock gained 41.15% to close Friday’s session at $ 7.10. RCAT shares have risen 472.58% in the past 12 months, and they have risen 136.67% in the past week. In the past three months the stock has gained 68.65%, while in the past six months it has lost 149.12%.
Let’s see why the RCAT stock fell on Friday after normal business hours?
Price of the public offering of ordinary shares
On July 18, 2021, Red Cat Holdings, Inc ad the price of its subscribed public offering of 13,333,334 common shares at a public offering price of $ 4.50 per share.
The underwriters will be granted a 45-day option to purchase up to 2,000,000 additional shares. The company will earn gross proceeds of approximately $ 60,000,000 and use it for service, sales and marketing efforts for its Red Cat Drone services, strategic acquisitions and related expenses, and general working capital.
Acquisition of Teal Drones
On July 13, 2021, Red Cat Holdings, Inc sign a definitive agreement to acquire Teal Drones, a leader in commercial and government unmanned aerial vehicle technology. The all-equity transaction will add Teal Drones to Red Cat’s portfolio and strengthen the group’s range of offerings in North America.
New CEO changing RCAT business strategy
On June 9, 2021, Red Cat Holdings, Inc ad that it was creating Enterprise and Consumer segments to refine the Company’s focus on the unique opportunities in each sector of the drone industry. This development represents the first step taken by the company’s new COO, Dr Allan Evans.
Launch of the Russell Microcap Index
Red Cat Holdings, Inc joined the Russell Microcap Index after the 2021 annual replenishment, effective after the U.S. market opened on June 28, according to a preliminary list of additions released by FTSE Russell on Friday, June 4, 2021.
On June 4, 2021, Red Cat Holdings, Incappointed Dr Allan Evans, as COO of Red Cat, where he will oversee the operations of the four subsidiaries.
Skypersonic acquisition completed
On May 11, 2021, Red Cat Holdings, Inc. completed the acquisition of Skypersonic, which allows drones to “fly anywhere” and “inspect the impossible.” Its Skyloc software system allows a drone to perform inspection services in locations where GPS is not available, while still recording and transmitting inspection data even when in use at remote locations. thousands of kilometers away. Skycopter is a miniature drone mounted in a cage to prevent damage to the inspected areas and the drone and is ideal for environments where manual inspection is not practical or possible.
RCAT stock jumped on Friday morning when the company announced the public offering of its common stock, but fell after hours when the company revealed the public offering price of its common shares. We don’t know how the RCAT stock will start the new week on Monday.