Red Cat Director Trades 200K Shares

Despite acquiring shares at $1.50 through warrant exercises, the sales brought in far higher prices, revealing significant gains.

July 10, 2025

Director Executes Sequential Trades Across Two Dates

Red Cat Holdings board member Nicholas R. Liuzza Jr. recently executed a series of transactions that shifted the makeup of his position in the company. According to a Form 4 filed with the SEC, Liuzza exercised warrants to acquire 200,000 shares at $1.50 per share, then sold an equal number of shares on the open market across two separate trading days.

Here’s how it unfolded. On May 20 and June 9, Liuzza exercised two blocks of 100,000 warrants. These warrants had been issued back in October 2020 and were set to expire in October 2025. Both were exercised at a fixed price of $1.50 per share. The very next day following each exercise—on May 21 and June 10—he sold the newly acquired shares at weighted average prices of $6.697 and $8.58, respectively. That means the sale prices were more than four times the cost of acquisition in both cases.

After all transactions, Liuzza’s direct ownership stood at 387,445 common shares. The filing notes a change in how the reporting person discloses holdings: earlier filings grouped common shares and derivatives together, but this one separates them to more clearly reflect the number of shares held.

Why It Matters for Investors

These types of transactions are common when warrants near expiration and the market price is well above the exercise price. They also reflect the mechanics of long-term equity incentives and how insiders manage exposure while remaining engaged with the company. Each line in the filing is timestamped and documented, giving investors a transparent look at the timing and structure of the trades.

For shareholders and analysts tracking Red Cat’s equity structure, this filing offers a clear view into recent insider activity—important context when evaluating float, trading volume, and alignment between leadership and shareholders.