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Red Cat Holdings Starts Nasdaq IPO Uplisting Effort


  • Red Cat Holdings has filed to raise $20 million in a Nasdaq uplisting IPO, although the final figure may vary.
  • The firm sells drone products and services for racers and to industry.
  • RCAT recently acquired Fat Shark to expand its platform as it seeks broader markets to pursue.
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Quick Take

Red Cat Holdings (NASDAQ:RCAT) has filed to raise $20 million in an IPO uplisting to Nasdaq of its common stock, according to an S-1 registration statement.

The firm designs and sells first-person-view products for drone operations and other drone products.

RCAT has recently acquired Fat Shark to expand its offerings and grow its revenue and customer base.

I'll provide a final opinion when we learn more about the IPO from management.

Company & Technology

Humacao, Puerto Rico-based Red Cat was founded to provide high performance viewing and related products for drone racing and other drone use cases.

Management is headed by president, Chairman and CEO Jeffrey Thompson, who has been with the firm since May 2019 and was previously founder and CEO of Towerstream (OTC:TWER), a fixed wireless internet service provider.

Below is a brief overview video of the company's recent acquisition of Fat Shark:

Source: RedChip Companies

The company's primary offerings include:

  • Race and freestyle products

  • SMB / Drone service providers

  • Platform / enterprise

Red Cat has received at least $4.8 million from investors.

Customer/User Acquisition

The company sells products to different sectors of the drone market, including first person view products sold to racers and freestyle drone enthusiasts as well as other drone products to industry and government.

Red Cat also offers a data acquisition and storage platform for compliant operations for business and related drone operators.

The firm seeks other acquisition opportunities to expand its offerings to various industry targets.

Sales and Marketing expenses as a percentage of total revenue have been 5.0% for the six months ended Oct. 31, 2020.

The company's Sales and Marketing efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Sales and Marketing spend, was a very high 20.0x in the most recent

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This article was written by

Donovan Jones profile picture

Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and software companies.

He also leads the investing group

IPO Edge

which offers: actionable information on growth stocks through first look S-1 filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.

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Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (2)

Stock Maniac 007 profile picture
What happens to its OTC stock if it goes to Nasdaq?
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