Red Cat Holdings, Inc. (RCAT) fell 22.52 percent to $5.77 during Thursday's trading, after announcing a $30 million registered direct offering.
Shares opened at $6.62 and traded between $5.75 and $6.75 on volume of 6.8 million, slightly above the average of 6.4 million on the Nasdaq. The stock is trading well above its 52-week low of $0.80 but far below the high of $15.27.
The drone technology company said it entered into securities purchase agreements with institutional investors to sell about 4.7 million shares of common stock. The offering, which is expected to close around April 11, 2025, will fund operations but also raised concerns over dilution.
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