The US Army has awarded Red Cat Holdings, Inc. (NASDAQ: RCAT) a contract to create a tactical drone. This is a promising trend since the rivalry will entail large volumes of purchases in the future.
Red Cat Holdings has joined the SRR T2 competition programme, which is developing a tiny, backpack-sized, platoon-level tactical drone. This is a unit of less than 50 employees, therefore there will be a lot of drones, and the winner will gain a considerable rise in revenue. RCAT, like the other bidders, earned $1.5 million to create the prototype.
Red Cat has a good chance of winning and receiving a hefty order. Red Cat’s portfolio already includes a tiny thermal quadcopter positioned as a solution for construction, mining, energy, oil and gas, and other sectors, as well as military applications.
Teal Drones, a Red Cat subsidiary, manufactures this drone. Teal engineers displayed their quadcopter to the military in September 2021. Moreover, 30 firms competed in the demonstration, but the device’s specifications were stringent, and only a few SRR T2 competitors survived.
Red Cat’s win in this competition is not certain, but the firm also has other in-demand technologies in the realm of unmanned aerial vehicles. Red Cat, in particular, creates custom drones and customized technologies. Red Cat engineers, for example, have developed novel e-commerce goods delivery drones as well as a special Skypersonic drone that can fly in challenging situations such as industrial facilities, tunnels, earthquake zones, and so on.
The shares of Red Cat Holdings Inc. (RCAT) fell -4.55 percent to $2.10 on Friday. The stock volume stayed at 1.62 million shares, which was lower than the previous 50-day average daily volume of 1.77 million shares. Furthermore, the company has a current market capitalization of $118.40 million and 53.59 million outstanding shares.