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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Red Cat Holdings, Inc. (RCAT) Investors Who Lost Money – Contact Law Offices of Howard G. Smith About Securities Fraud Investigation

Law Offices of Howard G. Smith announces an investigation on behalf of Red Cat Holdings, Inc. (“Red Cat” or the “Company”) (NASDAQ: RCAT) investors concerning the Company’s possible violations of federal securities laws.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN RED CAT HOLDINGS, INC. (RCAT), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

What Happened?

In March 2022, Red Cat announced that its subsidiary Teal Drones, Inc. (“Teal”) had been selected to compete in Tranche 2 of the U.S. Army’s Short Range Reconnaissance Program of Record (the “SRR Program”).

On July 27, 2023, Red Cat released its fiscal year 2023 financial results and revealed that its Salt Lake City Facility could only produce 100 drones per month and that construction of the facility was only “substantially completed” and, while it could potentially reach a production capacity of one thousand drones per month over the next two to three years, it would require additional capital investments.

On this news, Red Cat’s stock price fell $0.10, or 8.9%, to close at $1.02 per share on July 28, 2023, thereby injuring investors.

Then, on September 23, 2024, Red Cat released its first quarter fiscal 2025 financial results, missing consensus estimates and disclosing that it had spent “the past four months . . . retooling [the Salt Lake City Facility] and preparing for high volume production[,]” while admitting that a “pause in manufacturing of Teal 2 and building our Army prototypes impacted Teal 2 sales” because it “couldn’t produce and sell Teal 2 units while retooling [its] factory.”

On this news, Red Cat’s stock price fell $0.80, or 25.3%, over two consecutive trading days to close at $2.36 per share on September 25, 2024.

Then, on November 19, 2024, Red Cat announced that it had won the SRR contract, stating that it was worth potentially hundreds of millions of dollars.

However, on January 16, 2025, Kerrisdale Capital published a report alleging, among other things, that Red Cat had overstated that value of the SRR Contract and that it was worth approximately $20-25 million, based on U.S. Army budget documents.

On this news, Red Cat’s stock price fell $2.35, or 21.5%, over two consecutive trading days to close at $8.56 per share on January 17, 2025, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you purchased Red Cat securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,

3070 Bristol Pike, Suite 112,

Bensalem, Pennsylvania 19020,

Telephone: (215) 638-4847

Email: howardsmith@howardsmithlaw.com,

Visit our website at: www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

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