Red Cat announced that the Black Widow System, developed by its subsidiary Teal Drones, has been approved and added to the NATO Support and Procurement Agency (NSPA) catalogue based on a three-year contract.
Red Cat Holdings’ (RCAT) shares jumped nearly 13% in premarket trading on Thursday after the company announced that the Black Widow System, developed by its subsidiary Teal Drones, has been approved and added to the NATO Support and Procurement Agency (NSPA) catalogue.
Black Widow is a mission-ready small Uncrewed Aerial System (sUAS) that the U.S. Army selected as one of two vendors to manufacture systems for its Short Range Reconnaissance (SRR) program. Red Cat said that the inclusion of Black Widow in the NSPA catalogue is based on a three-year contract with options for two additional years at NSPA’s discretion.
Retail sentiment on Red Cat remained unchanged in the ‘bearish’ territory, with message volumes at ‘low’ levels, according to data from Stocktwits. The retail user message count on the stock jumped over 78% in the last 24 hours on Stocktwits.
A Stocktwits user noted that this news “is like waking up and it’s Christmas.”
The company said that this designation enables NATO member nations and eligible partners to procure the Black Widow through NSPA-managed channels, including direct catalogue ordering and sponsored tenders.
Red Cat said that Black Widow drones equip warfighters with advanced, networked communication systems designed to address emerging threats. It is designed for tactical intelligence, surveillance, and reconnaissance (ISR), perimeter security, overwatch, and other defense and security missions.
Red Cat noted that the inclusion in the NSPA catalogue underscores Black Widow’s readiness for allied missions while maintaining the procurement rigor government customers expect. The company added that the designation facilitates procurement opportunities; however, the specific quantities, configurations, and delivery timelines are determined by end-users through NSPA’s standard processes.
A bullish user on Stocktwits expects the stock to surpass $10 on Thursday.
Shares of Red Cat have declined nearly 34% this year but have almost tripled in the last 12 months.
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