Benzinga | Jul 13, 2021 08:33AM EDT

Red Cat Holdings To Acquire Teal Drones For Undisclosed Sum

* Drone technology provider Red Cat Holdings Inc (NASDAQ:RCAT) agreed to acquire Teal Drones, an automated aerial vehicle technology firm.

* The financial terms of the transaction remain undisclosed.

* The all-stock transaction will add Teal Drones to Red Cat's portfolio and strengthen the group's spectrum of offerings across North America.

* The arrangement will help Red Cat naturally expand into the enterprise and government spaces, Red Cat CEO Jeff Thompson said. Teal's Golden Eagle drone platform and its existing access to the Department of Defense, combined with Red Cat's market reach and experience, should well-position the collaborative group for success as the industry grows.

* Red Cat held $0.47 million in cash and equivalents as of Jan. 31, 2021.

* Price action: RCAT shares traded higher by 1.01% at $3.00 in the premarket session on the last check Tuesday.