Red Cat Revises Financing Terms With Lind

The amended agreement includes a note increase, adjusted warrant terms, and short-term covenant waivers.

April 11, 2025

Red Cat Holdings Restructures $16.5M Convertible Note Agreement With Lind

Red Cat Holdings is adjusting its financing playbook. On April 9, the company amended the terms of its February convertible note agreement with Lind Global Asset Management, aiming for greater flexibility and a more efficient capital structure.

Key Changes to the Note

• Principal Increase: The value of the note rose from $16.5 million to $18.15 million.


• Lower Conversion Price: The new price is $9.52 per share, down from $16.15.


• Warrant Repricing: The exercise price was cut to $7.62 from $15.

These updates create more favorable terms for Lind and give Red Cat more room to maneuver when issuing shares. The revised pricing structure reflects a shift toward more flexible capital access, tailored to current market conditions.

Extended Timeline and Greater Flexibility

The maturity date of the note has been pushed out to May 10, 2026, offering Red Cat additional time to manage its repayment strategy. Under the updated agreement, if Lind initiates a conversion, Red Cat can choose to pay up to 50% of the amount in cash—plus a 2.5% premium—when market prices fall below the new conversion threshold. This approach helps mitigate potential dilution.

Temporary Waivers Add Breathing Room

Three significant investor protections have been temporarily waived through April 17:

• Price Reset Provision


• Offering Proceeds Provision


• Participation Rights

These waivers allow Red Cat to explore new financing or capital market activities without triggering automatic adjustments to the note or warrant terms. That added flexibility could be key as the company navigates short-term opportunities or strategic decisions.

These changes signal a move toward greater adaptability in how Red Cat balances its financing obligations. The company is aligning its terms to better respond to shifting market dynamics, with mechanisms in place to stay nimble across debt and equity planning. For full details, the complete amendment is available in the latest filing.