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Red Cat Flies On $90m Customs and Border Protection Contract Win -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — Red Cat Holdings Inc (NASDAQ:)Following Wednesday’s announcement by the company, shareholders were given a boost. announcedTeal Drones has been named one of five contractors by United States Customs and Border Protection and awarded a blanket purchasing agreement.

This agreement will have an estimated value of about $90 millions over five years.

After falling significantly in 2021, Red Cat — software provider to the drone industry — shares are up around 24% from Tuesday’s close to $2.27 at the time of writing. Their session high was $2.73.

This agreement allows the Department of Homeland Security to order unmanned aircraft systems (UAS)., i.e. drones. Red Cat claimed that the drones provide an “airborne reconnaissance and surveillance capability and tracking capability” for United States Customs and Border Protection.

Red Cat CEO Jeff Thompson stated: “We are humbled Teal was chosen to supply U.S.-made drones that comply with the strict technical requirements of Department of Homeland Security.

This award represents a significant achievement for George Matus (Teal’s Founder/CEO), and all of Teal, as well as the Teal team’s foundation built over the past decade.

Thompson stated that Teal will make use of the new, 26,000-square-foot facility in Salt Lake City. It opened its doors in October. Initially, it was a 13,000 square foot facility. To meet growing demand, however, the firm announced that the factory will be doubled in size.

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