Red Cat Holdings Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Other Events, Financial Statements and Exhibits
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Item 1.01. Entry into a Material Definitive Agreement.
Northland Registered Direct Offering
On June 17, 2025, Red Cat Holdings, Inc. (the “Company”) entered into a securities purchase agreement (the “Purchase Agreement”) with a certain institutional investors (the “Purchasers”) pursuant to which the Company agreed to issue and sell, in a registered direct offering (the “Registered Direct Offering”), an aggregate of 6,448,276 shares (the “Shares”) of the Company’s common stock (the “Common Stock”) at a price of $7.25 per share. The gross proceeds to the Company from the Registered Direct Offering are expected to be approximately $46.75 million, before deducting the placement agents’ fees and other offering expenses payable by the Company.
The Registered Direct Offering closed on June 18, 2025 (the “Closing Date”). The Company intends to use the net proceeds from the Registered Direct Offering for general corporate and working capital purposes, including but not limited to operating expenditures related to its new unmanned surface vessel division.
The Purchase Agreement contains representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company, including for liabilities arising under the Securities Act of 1933, other obligations of the parties and termination provisions. The representations, warranties and covenants contained in the Purchase Agreement were made only for the purposes of such agreements and as of the specific dates, were solely for the benefit of the parties to such agreements and may be subject to limitations agreed upon by the contracting parties.
Pursuant to the terms of the Purchase Agreement and subject to certain exceptions as set forth in the Purchase Agreement, from the date of the Purchase Agreement until thirty (30) days after the Closing Date, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents. In addition, until thirty (30) days from the Closing Date, the Company is prohibited from entering into a Variable Rate Transaction (as defined in the Purchase Agreement), subject to certain limited exceptions.
Each of the Company’s executive officers and directors have agreed, subject to certain exceptions, not to dispose of or hedge any shares of Common Stock or securities convertible into or exchangeable for shares of Common Stock during the period from the date of the lock-up agreement continuing through the thirty (30) days after the Closing Date.
In connection with the Registered Direct Offering, the Company entered into a placement agency agreement (the “Placement Agency Agreement”) with Northland Securities, Inc. (the “Placement Agent”), pursuant to which the Placement Agent agreed to serve as the exclusive placement agent for the Company. The Company agreed to pay the Placement Agent an aggregate cash fee equal to 6.0% of the gross proceeds received in the Registered Direct Offering.
The Shares are being sold pursuant to the Company’s effective registration statement on Form S-3 (Registration Statement No. 333-283242) that was declared effective by the U.S. Securities and Exchange Commission on December 11, 2024 and a related base prospectus and prospectus supplement (the “Prospectus Supplement”) thereunder.
The foregoing descriptions of the Purchase Agreement and the Placement Agency Agreement do not purport to be complete and are qualified in their entirety by the full text of the form of Purchase Agreement and the Placement Agency Agreement, copies of which are attached hereto as Exhibits 10.1 and 1.1, respectively, and are incorporated by reference herein.
This Current Report on Form 8-K does not constitute an offer to sell any securities or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The legal opinion and consent of Sheppard, Mullin, Richter & Hampton LLP relating to the validity of the Shares issued in the Registered Direct Offering is filed herewith as Exhibit 5.1.
Third Amendment to Lind Secured Note Financing
On June 17, 2025, the Company entered into a (i) Third Amendment to Senior Secured Convertible Promissory Note and Warrant Issued February 10, 2025 with Lind Global Asset Management XI LLC (“Lind XI”) and (ii) Second Amendment to Warrant Issued November 26, 2024 between the Company and Lind Global Asset Management X LLC (“Lind X,” , together with Lind XI, “Lind”) (collectively, the “Lind Amendment”), dated and effective June 17, 2025, which amended the: (A) senior secured convertible promissory note (the “Promissory Notes”) issued thereunder; (B) Common Stock Purchase Warrant to purchase up to 1,000,000 shares of the Company’s common stock, issued from the Company to Lind XI on February 10, 2025, as amended (the “Feb ’25 Warrant”); and (C) Common Stock Purchase Warrant to purchase up to 326,000 shares of the Company’s common stock, issued from the Company to Lind X on November 26, 2024, as amended (the “Nov ’24 Warrant” and, together with the Feb ’25 Warrant, the “Warrants”).
Under the terms of the Lind Amendment, and in exchange for Lind waiving its right to purchase up to 20% of the securities issued in an equity financing, the Company and Lind amended the Promissory Note and the Warrants to (1) exempt any adjustments from this offering to the conversion price of the Promissory Notes and exercise price of the Warrants; (2) remove the Company’s election to pay, in certain circumstances, up to 50% of the conversion amount under the Promissory Note in cash; and (3) remove the Company’s right to prepay the Promissory Note.
The foregoing description of the Amendment does not purport to be complete and is qualified in its entirety by the full text of the Amendment, a copy of which is attached as Exhibit 10.2 and is incorporated by reference herein.
Item 8.01 Other Events.
On June 17, 2025, the Company issued a press release announcing the pricing of the Registered Direct Offering. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
d) Exhibits.
| Exhibit No. | Description | |
| 1.1 | Placement Agency Agreement dated June 17, 2025 between Northland Securities, inc. and Red Cat Holdings, Inc. | |
| 5.1 | Opinion of Sheppard, Mullin, Richter & Hampton LLP | |
| 10.1 | Form of Securities Purchase Agreement | |
| 10.2 | Third Amendment to Senior Secured Convertible Promissory Note and Warrant Issued February 10, 2025, Second Amendment to Warrant Issued November 26, 2024 | |
| 99.1 | Press release dated June 17, 2025 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RED CAT HOLDINGS, INC. | ||
| Dated: June 18, 2025 | By: | /s/ Jeffrey Thompson |
| Name: | Jeffrey Thompson | |
| Title: | Chief Executive Officer | |
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