Red Cat Holdings, Inc (NASDAQ:RCAT) shares are trading higher Wednesday as subsidiary Teal Drones wins an additional $1.2 million to continue developing a new sUAS prototype for the U.S. Army’s Short Range Reconnaissance (SRR) program.
Teal first bagged a prototype contract for the SRR Tranche 2 program in March 2022, and the Army now doled out a total of $2.7 million for Teal’s participation.
Teal is one of only three vendors competing in Tranche 2, which the Army has advised will now be the final tranche of the SRR program.
After vendors complete a series of testing and demonstration milestones, the U.S. Army will select the winning vendor(s) to produce a rucksack-portable sUAS. The system will provide Army platoons (20 to 50 soldiers) with a rapidly deployable surveillance and reconnaissance capability to gain situational awareness beyond the next terrain feature.
Red Cat is a military technology company integrating robotic hardware and software to protect and support the warfighter.
Price Action: RCAT shares traded higher by 10.14% at $1.26 premarket on the last check Wednesday.
