Red Cat Holdings Intends To Offer To Sell Common Shares In Public Offering; No Terms Disclosed
Portfolio Pulse from Benzinga Newsdesk
Red Cat Holdings plans to sell common shares in a public offering, with terms yet to be disclosed. The company will also give the underwriter a 45-day option to buy up to an additional 15% of the shares to cover over-allotments. Proceeds will be used for general corporate purposes, working capital, and capital expenditures.
December 06, 2023 | 10:18 pm
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Red Cat Holdings is conducting a public offering of its common shares, which may dilute current shareholders but provide capital for the company's growth and expenses.
Public offerings often lead to share dilution, which can negatively impact the stock price in the short term. However, the capital raised can be beneficial for the company's long-term growth. The lack of terms disclosed adds uncertainty to the immediate market reaction.
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