[8-K] Red Cat Holdings, Inc. Reports Material Event

Rhea-AI Filing Summary

Red Cat Holdings announced a $46.75 million registered direct offering through the sale of 6,448,276 shares of common stock at $7.25 per share to institutional investors. The offering closed on June 18, 2025, with Northland Securities serving as exclusive placement agent for a 6.0% fee.

Key details of the offering include:

• Proceeds will fund general corporate purposes and operating expenses for new unmanned surface vessel division
• 30-day lock-up period for company executives and directors
• Company restricted from issuing additional shares or entering variable rate transactions for 30 days

Additionally, the company amended agreements with Lind Global Asset Management, modifying terms of existing convertible notes and warrants. Key changes include:

• Exempting the current offering from triggering price adjustments
• Removing the company's cash payment option for conversions
• Eliminating prepayment rights on the promissory note

Positive

• Successfully raised $46.75 million through registered direct offering at $7.25 per share, providing significant capital for operations and expansion
• Proceeds will fund new unmanned surface vessel division, indicating strategic expansion into new market segment
• Offering was conducted through a registered S-3, suggesting strong institutional backing and market confidence

Negative

• 30-day lock-up period restricts company from issuing additional shares or entering variable rate transactions, limiting near-term financing flexibility
• Amendment to Lind agreement removes company's right to prepay promissory notes and eliminates option to pay 50% of conversion amount in cash, reducing financial flexibility
• 6% placement agent fee ($2.8 million) represents significant cost of capital

Insights

Capital Markets Specialist

Red Cat secured $46.75M through stock offering at $7.25/share, strengthening finances to fund new unmanned surface vessel division.

Red Cat Holdings has successfully executed a substantial $46.75 million registered direct offering at $7.25 per share, representing a significant capital injection for the drone technology company. The offering of approximately 6.45 million shares closed on June 18, 2025, with Northland Securities serving as the exclusive placement agent receiving a 6% fee. This financing materially strengthens Red Cat's balance sheet and provides critical working capital for expansion initiatives.

The filing highlights the company's intention to allocate these funds toward its new unmanned surface vessel division - signaling a strategic expansion beyond its current product portfolio. This diversification into maritime unmanned systems represents a notable strategic pivot that could open additional defense and commercial market opportunities.

Alongside the offering, Red Cat amended its existing debt arrangements with Lind Global Asset Management, making several investor-friendly concessions: (1) exempting this offering from triggering price adjustments on existing convertible securities, (2) removing the company's option to satisfy conversions partially in cash, and (3) eliminating prepayment rights. These modifications suggest management prioritized completing this financing without disruption, even at the cost of reduced flexibility in managing existing obligations.

The 30-day lock-up period for both the company and insiders provides temporary stability in the capital structure, preventing immediate dilution while the market absorbs this offering. The $7.25 pricing and institutional investor participation signal reasonable market confidence in Red Cat's growth strategy and expansion into unmanned maritime systems.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 17, 2025

Red Cat Holdings, Inc.

(Exact name of registrant as specified in its charter)

Nevada		001-40202		88-0490034
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

15 Ave. Munoz Rivera Ste 2200 San Juan, PR (Address of principal executive offices) 00901 (Zip Code)

Registrant’s telephone number, including area code: (800) 466-9152

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, par value $0.001		RCAT		The Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01. Entry into a Material Definitive Agreement.

Northland Registered Direct Offering

On June 17, 2025, Red Cat Holdings, Inc. (the “Company”) entered into a securities purchase agreement (the “Purchase Agreement”) with a certain institutional investors (the “Purchasers”) pursuant to which the Company agreed to issue and sell, in a registered direct offering (the “Registered Direct Offering”), an aggregate of 6,448,276 shares (the “Shares”) of the Company’s common stock (the “Common Stock”) at a price of $7.25 per share. The gross proceeds to the Company from the Registered Direct Offering are expected to be approximately $46.75 million, before deducting the placement agents’ fees and other offering expenses payable by the Company.

The Registered Direct Offering closed on June 18, 2025 (the “Closing Date”). The Company intends to use the net proceeds from the Registered Direct Offering for general corporate and working capital purposes, including but not limited to operating expenditures related to its new unmanned surface vessel division.

The Purchase Agreement contains representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company, including for liabilities arising under the Securities Act of 1933, other obligations of the parties and termination provisions. The representations, warranties and covenants contained in the Purchase Agreement were made only for the purposes of such agreements and as of the specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.

Pursuant to the terms of the Purchase Agreement and subject to certain exceptions as set forth in the Purchase Agreement, from the date of the Purchase Agreement until thirty (30) days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents. In addition, until thirty (30) days from the Closing Date, the Company is prohibited from entering into a Variable Rate Transaction (as defined in the Purchase Agreement), subject to certain limited exceptions.

Each of the Company’s executive officers and directors have agreed, subject to certain exceptions, not to dispose of or hedge any shares of Common Stock or securities convertible into or exchangeable for shares of Common Stock during the period from the date of the lock-up agreement continuing through the thirty (30) days after the Closing Date.

In connection with the Registered Direct Offering, the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Northland Securities, Inc. (the “Placement Agent”), pursuant to which the Placement Agent agreed to serve as the exclusive placement agent for the Company. The Company agreed to pay the Placement Agent an aggregate cash fee equal to 6.0% of the gross proceeds received in the Registered Direct Offering.

The Shares are being sold pursuant to the Company’s effective registration statement on Form S-3 (Registration Statement No. 333-283242) that was declared effective by the U.S. Securities and Exchange Commission on December 11, 2024 and a related base prospectus and prospectus supplement (the “Prospectus Supplement”) thereunder.

The foregoing descriptions of the Purchase Agreement and the Placement Agency Agreement do not purport to be complete and are qualified in their entirety by the full text of the form of Purchase Agreement and the Placement Agency Agreement, copies of which are attached hereto as Exhibits 10.1 and 1.1, respectively, and are incorporated by reference herein.

This Current Report on Form 8-K does not constitute an offer to sell any securities or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The legal opinion and consent of Sheppard, Mullin, Richter & Hampton LLP relating to the validity of the Shares issued in the Registered Direct Offering is filed herewith as Exhibit 5.1.

Third Amendment to Lind Secured Note Financing

On June 17, 2025, the Company entered into a (i) Third Amendment to Senior Secured Convertible Promissory Note and Warrant Issued February 10, 2025 with Lind Global Asset Management XI LLC (“Lind XI”) and (ii) Second Amendment to Warrant Issued November 26, 2024 between the Company and Lind Global Asset Management X LLC (“Lind X,” , together with Lind XI, “Lind”) (collectively, the “Lind Amendment”), dated and effective June 17, 2025, which amended the: (A) senior secured convertible promissory note (the “Promissory Notes”) issued thereunder; (B) Common Stock Purchase Warrant to purchase up to 1,000,000 shares of the Company’s common stock, issued from the Company to Lind XI on February 10, 2025, as amended (the “Feb ’25 Warrant”); and (C) Common Stock Purchase Warrant to purchase up to 326,000 shares of the Company’s common stock, issued from the Company to Lind X on November 26, 2024, as amended (the “Nov ’24 Warrant” and, together with the Feb ’25 Warrant, the “Warrants”).

Under the terms of the Lind Amendment, and in exchange for Lind waiving its right to purchase up to 20% of the securities issued in an equity financing, the Company and Lind amended the Promissory Note and the Warrants to (1) exempt any adjustments from this offering to the conversion price of the Promissory Notes and exercise price of the Warrants; (2) remove the Company’s election to pay, in certain circumstances, up to 50% of the conversion amount under the Promissory Note in cash; and (3) remove the Company’s right to prepay the Promissory Note.

The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by the full text of the Amendment, a copy of which is attached as Exhibit 10.2 and is incorporated by reference herein.

Item 8.01 Other Events.

On June 17, 2025, the Company issued a press release announcing the pricing of the Registered Direct Offering. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.

Item 9.01 Financial Statements and Exhibits.

d) Exhibits.

Exhibit No.		Description
1.1		Placement Agency Agreement dated June 17, 2025 between Northland Securities, inc. and Red Cat Holdings, Inc.
5.1		Opinion of Sheppard, Mullin, Richter & Hampton LLP
10.1		Form of Securities Purchase Agreement
10.2		Third Amendment to Senior Secured Convertible Promissory Note and Warrant Issued February 10, 2025, Second Amendment to Warrant Issued November 26, 2024
99.1		Press release dated June 17, 2025
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RED CAT HOLDINGS, INC.
Dated: June 18, 2025	By:	/s/ Jeffrey Thompson
	Name:	Jeffrey Thompson
	Title:	Chief Executive Officer

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FAQ

How much did RCAT raise in its June 2025 registered direct offering?

RCAT raised approximately $46.75 million in gross proceeds through a registered direct offering, selling 6,448,276 shares of common stock at $7.25 per share. The offering closed on June 18, 2025.

What will RCAT use the proceeds from its June 2025 offering for?

RCAT intends to use the net proceeds from the registered direct offering for general corporate and working capital purposes, including operating expenditures related to its new unmanned surface vessel division.

Who was the placement agent for RCAT's June 2025 offering and what fees did they receive?

Northland Securities, Inc. served as the exclusive placement agent for the offering. RCAT agreed to pay them a cash fee equal to 6.0% of the gross proceeds received in the registered direct offering.

What lock-up restrictions were placed on RCAT insiders after the June 2025 offering?

RCAT's executive officers and directors agreed not to dispose of or hedge any shares of Common Stock or convertible securities for 30 days after the closing date (June 18, 2025). Additionally, the company itself is restricted from issuing new shares or entering into Variable Rate Transactions for 30 days.

What changes were made to RCAT's Lind Global financing agreement in June 2025?

RCAT amended its agreement with Lind Global to: (1) exempt adjustments from this offering to conversion price and warrant exercise price, (2) remove the Company's option to pay up to 50% of conversion amounts in cash, and (3) remove the Company's right to prepay the Promissory Note. These changes were made in exchange for Lind waiving its right to purchase up to 20% of the securities in the equity financing.