Red Cat Holdings to sell non-defense division

Red Cat Holdings announced today it has agreed to sell its consumer division to Unusual Machines.

The consumer division consists of Rotor Riot and Fat Shark Holdings, the company's recreational and hobbyist drones and first-person-view goggles subsidiaries.

The sale will consist of Unusual Machines paying $18 million in cash and security, according to a Red Cat Holdings statement.

The sale agreement "will allow us to focus our efforts and capital on military and defense," Red Cat CEO Jeff Thompson said in the statement. "Our recent partnerships with Tomahawk Robotics and Reveal Technology gives the Warfighter a complete 'Made in USA' system with 360 degrees of situational awareness, multi-ship control of four vehicles by one operator, and rapid intelligence at the tactical edge. This transaction will strengthen our already healthy balance sheet with additional non-dilutive capital to help us execute our rapid growth."