Red Cat Raises $46.75M

Amended financing terms with Lind enhance Red Cat’s flexibility following its latest strategic capital raise.

June 19, 2025

Red Cat Holdings Closes Direct Offering, Secures $46.75M in Gross Proceeds

Red Cat Holdings just completed a $46.75 million capital raise through a registered direct offering, adding momentum to its newest growth initiative: a push into unmanned surface vessels (USVs). The company issued more than 6.4 million shares of common stock at $7.25 per share to institutional investors, closing the transaction on June 18, 2025.

The funds are earmarked for general operations and working capital—with a clear emphasis on supporting its USV division. It’s a significant step as the company moves beyond drones and expands into maritime systems.

Northland Securities acted as the exclusive placement agent and received a 6% commission on gross proceeds. As part of the agreement, Red Cat and its leadership team agreed to a 30-day quiet period on new share issuance or hedging activity. That lock-up gives investors some breathing room before any new equity hits the market.

Key Financing Terms Adjusted Alongside Capital Raise

At the same time, Red Cat revised terms on its outstanding convertible notes and warrants with Lind Global Asset Management. In exchange for waiving participation rights in the equity offering, Lind agreed to a series of updates:

• The company’s new share issuance will not trigger any changes to existing conversion or warrant prices.


• Red Cat has relinquished the right to repay portions of the notes in cash under certain conditions.


• The company also removed its ability to prepay the notes ahead of maturity.

These changes simplify Red Cat’s financial structure and remove near-term uncertainties tied to earlier financing terms. The offering was conducted under a previously approved SEC registration statement, with legal review provided by Sheppard, Mullin, Richter & Hampton LLP.

With new capital in hand and updated financing terms locked in, Red Cat is moving forward with a cleaner balance sheet and a sharper operational focus—positioning itself to build out its USV capabilities and support long-term growth across its unmanned systems portfolio.