Why Red Cat Holdings Stock Is Taking Off Today

Red Cat Holdings Inc RCAT is trading higher Wednesday morning after the company announced its subsidiary, Teal Drones, was awarded a multiple award blanket purchase agreement by the United States Customs and Border Protection worth up to $90 million over five years.

The agreement will allow Department of Homeland Security agencies to place orders for unmanned aircraft systems.

The drones will provide supplemental airborne reconnaissance, surveillance and tracking capability to enhance situational awareness for field commanders and agents in areas that lack nearby traditional surveillance systems or available manned air support.

"We are honored Teal was selected to provide U.S. manufactured drones that meet the rigorous technical requirements of the Department of Homeland Security," said Jeff Thompson, CEO of Red Cat Holdings. "We look forward to fulfilling all orders placed under this agreement, along with any others that we may receive, and making full use of Teal's new 26,000-square foot facility in Salt Lake City."

See Also: Why Tesla Shares Are Rising Today

Red Cat Holdings is a provider of secure blockchain-based distributed storage, analytics and SaaS for the drone industry.

RCAT Price Action: Red Cat Holdings has traded as high as $7.46 and as low as 80 cents over a 52-week period.

The stock was up 40.40% at $2.57 at time of publication.

Photo: Ievhenii_Putiata from Pixabay.

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