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Red Cat (RCAT) Stock: Why The Price Jumped UpApr 4th, 2022 13:30 EST
- The stock price of Red Cat Holdings, Inc. (Nasdaq: RCAT) increased by over 15% during intraday trading today. This is why.
The stock price of Red Cat Holdings, Inc. (Nasdaq: RCAT) – a hardware-enabled software provider to the drone industry – increased by over 15% during intraday trading today. Investors are responding positively to Red Cat announcing that its subsidiary Teal Drones has secured an order for 15 Golden Eagle drone units, plus spares and training, from a NATO (North Atlantic Treaty Organization) member country that has committed them to deployment in Ukraine.
“Drones in the category of the Golden Eagle can be among the most impactful technologies during a war, and there is significant need for drones in Ukraine to be used for reconnaissance purposes. We are now seeing small drones like the Golden Eagle helping to define the outcomes of wars such as what we’re experiencing now. Teal is one of the only drone companies in the world able to provide these types of drones at scale, utilizing our own proprietary technology, manufacturing and resources, despite the supply chain issues that have plagued the industry at large.”
– George Matus, founder and CEO of Teal
“Red Cat Holdings stands by Ukraine, and we will continue to support its needs to the greatest extent possible using Teal’s Golden Eagle platform. Since the war in Ukraine began, we have seen strong interest in the Teal drone platform from numerous European countries. Defense budgets within Europe have risen seemingly overnight due to the need to support this current invasion, as well as the desire to be prepared for future geopolitical conflicts. Many countries and military units are recognizing the strategic benefit of having an adequate baseline inventory of drone units that can be invaluable in reconnaissance and surveillance on the front lines. We believe this is the first of many relationships and purchases in the region.”
– Jeff Thompson, Red Cat’s CEO
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.