Red Cat shares surged more than 40% after the drone technology firm was selected by the US Army as the production provider for its Short Range Reconnaissance (SRR) Program of Record.
The award follows a multi-tranche competitive process evaluating its Teal next-generation small unmanned aircraft system, carried out by the Army Project Management Office for Uncrewed Aircraft Systems, Army Maneuver Battle Lab, Army Test and Evaluation Command, and Army Operational Test Center.
The company said its focus is on ramping production to meet the Army’s acquisition objective of 5,880 systems, which is subject to change over the five-year period of performance.
It is also preparing to meet increased demand from other branches of the US Department of Defense, federal agencies, and allied nations.
“The long-awaited production selection marks a new era for our company and the future of American drones,” Red Cat chief technology officer George Matus said in a statement.
“We were selected based on soldier feedback, technical performance, volume manufacturability, and system cost. Our top priority now is to start ramping production of the next generation system, recently announced as the Black Widow and WEB, and give warfighters the tools they need to be successful on the modern battlefield,” Matus said.
Jeff Thompson, Red Cat CEO, added: “We believe this advanced technology will enable the Army to shape the battlefield, save soldiers’ lives, and serve as a powerful tool in their arsenal.”
Shares of Red Cat added 43.7% at about $6.80 in the early afternoon on Wednesday.