Red Cat Holdings, Inc. (RCAT) Stock is Skyrocketing in the Pre Market. Here’s why

Red Cat Holdings, Inc. (RCAT) is an innovative company manufacturing drone-based product lines via its subsidiaries. Golden Eagle is one of the five drones approved by the Defense Department for its various features including public safety and inspection. The company also develops software-based solutions for cloud-based analytics. Also, it offers Dronebox which is a blockchain technology for the recording, storage, and analysis of flight data.

The price of RCAT stock during the regular trading of December 21, 2021, was $1.83 with a slight decrease of 3.68%. At last check in the pre-market on December 22, 2021, the stock was remarkably up by 19.13%.

Events and Happenings

On December 22, 2021 RCAT reported that one of its subsidiaries Teal Drones had been awarded by US Customs and Border Protection for the fixed-price, multiple-award blanket purchase agreement (BPA). The BPA had an estimated worth of $90 million for a 5-year ordering timeline.

Key Financials

On December 20, 2021, RCAT announced the financial results for the second fiscal quarter 2022 ended October 31, 2021. Major highlights are mentioned below


Revenues over the year increased more than 300%. Revenue of the second quarter of 2022 was $1.9 million, against $0.4 million for the same period the prior year.

Total Assets

The total assets of the company for Q2 2022 were $93.3 million.

Net Loss per Share

Basic and diluted net loss per share for Q2 2022 was $2.7 million or $0.05 per share as opposed to the same period prior year when the net loss was $0.7 million or $0.04 per share

On November 9, 2021, RCAT announced that the top management of the company presented the company’s corporate overview at the Virtual Q4 Investor Summit Conference, held on November 16–17, 2021. On November 8, 2021, RCAT informed about the impact of the infrastructure bill on the drone industry and its likely advantages to RCAT.

On October 20, 2021, RCAT announced the functioning of another US-based manufacturing facility located in Utah.  On October 18, 2021, RCAT announced that the top management of the company presented a corporate summary at the Dawson James 6th Annual Small Cap Growth Conference, held on October 21, 2021. On October 5, 2021, RCAT announced that the top management of the company presented at The Virtual Microcap Rodeo Fall Harvest Best Ideas Conference held on October 5, 2021.


Despite the price of RCAT stock being down by19% from the past month, yet the company is achieving milestones in the form of purchase agreements with the governmental departments. The deal between the two is the possible reason for the climbing of the company’s stock in the pre-market and the company is gaining approval from the analysts for its strong policies.