Red Cat Holdings, Inc. has entered into an agreement with institutional fund manager The Lind Partners, securing up to $20 million in debt financing to support the ongoing development of its Arachnid Family of Systems.
The investment is reportedly expected to provide Red Cat with the working capital needed to scale up production and the ongoing development of its Arachnid Family of Systems, which includes Black Widow™, Edge 130, and a new line of FANG™ First-Person View (FPV) drones.
The goal of the Family of Systems is to meet the needs of the U.S. Department of Defense and NATO allies for drone systems that are low-cost, portable, field repairable, and recoverable.
In addition, Red Cat has applied for $58 million in debt financing from the Department of Defense Office of Strategic Capital (OSC). OSC implements strategies and partnerships to accelerate and scale private investment in critical supply chain technologies needed for national security.
Jeff Thompson, Red Cat CEO, commented, “The recent financing will allow us to expedite and expand the Edge 130 factory and build-out and ramp up mass production of the Black Widow. As a company focused on technology that advances the Department of Defense capabilities, we are a strong candidate for the Office of Strategic Capital’s low-cost debt program. The potential total financing of $93 million is the least dilutive option for our shareholders.”
