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I think there are signs that we may be getting close! Let’s hope so. No guarantees of course. Just looking at the trading and then obviously the uplist to QB. Maybe another big PR coming or something? Good question. Maybe the final piece to the puzzle acquisition wise?
No? Maybe they have not updated the software yet so it’s an oversight. Just happy to start to see mor PRs and communication. Hopefully will start to get the ball rolling.
This May Be RCATs First Real Attempt At Promotion!
Let us hope!
https://www.otcmarkets.com/stock/RCAT/news?id=283392
Been on otc I hub for years. Not J Read but then again if you had read all of my posts since 2018 you would realize I actually hold the guy responsible for stealing our money at this point. But of course anyone who has been here for years would know that and not just naked shorting for a quick buck. Funny timing how always negative comments when the naked shorting numbers rise significantly? Hmm.
Think I May Have Figured Something Out
Was thinking about the stock structure this morning and dawned on me that they have set it up so they have a small amount of "unrestricted" stock compared to the rest of their holdings. The reason they may have done this, not sure but make sense, is basically so they can convert and hold the stock price in the .80-1.30 range while they are working through completing their plan of acquisitions with giving equity so that all acquisitions are treated equally as far as their dollar value purchase price roughly in their equity positions when it is all completed. Thus, as I have said before recently, they are able to control the equity given percentage wise in the company by TEMPORARILY dumping shares and not trying to push the volume upward at this point to keep that price within that target range. Just a thought but does make some sense considering everything and also why they would restrict most of all of their inside holdings.
So once that is over, then hopefully that stage is complete and then they start to really push the company to the retail market to increase volume and price! Also is a sign IMHO we may be getting close to that stage since they PRd the OTC upgrade. JMHO but sure hope it all comes to pass eventually. Either way, it DOES look like this company is eventually going somewhere! GLTA REALLLY Ls such as myself!
Really think this is an interim step until they can qualify for Nasdaq or NYSE through ageing, financials, and share price over time. Either way, now that we are going to be OTCQB again it should give us more exposure since QB stocks, as we were before, are on a lot more of the retail trading alerts and lists overall. This is a very good thing! Plus, hoping that maybe the reason they just filed the uplist is because they already finalized some 3rd acquisition but have not announced it yet? If so, this could be a sign we are finally all clear! Thus, they no longer need to keep the price down in order to structure the company they wanted as I have said recently. One can hope! But I am guessing the QB filing is a hint that it may be done. Cross our fingers that it will be announced soon and then we should finally go up like we have been waiting years to do here! GLTA!
We are on the same page there. Tired of waiting for sure. But maybe the reason they are not trying to market and push the stock at this point and keep it off the radar is, as I said, the acquisitions. So, once they really go after it and maybe pay some big players to market the stock things will change. Ironically, their biggest fear could have been structurally that the first two acquisitions would spike the price way up! Thus, making it much harder to close a deal for a certain dollar value in stock because the holding would be much smaller and of course the acquired companies shareholders would have a much diminished equity position in Redcat compared to the prior acquisitioned shareholders because of the lower amount of holdings at a higher share price. EVEN THOUGH THEIR COMPANY MAY BE WORTH MORE THEN THE PRIOR ONES MERGED! If you look at it that way and if they have been planning to target certain companies from the start, then all of this starts in some ways to make a ton more sense. Especially considering they are on verge of having some great things coming like you said....Dronebox...other potential contracts and products...all those PRs could be held due to the fact that they do not want the stock to go sky high YET!
Another aspect to this, with the price to some extent looking like it’s being held down, is the fact that this is being held down on purpose structurally. When I say structurally, I’m talking about negotiating with acquisition owners where they’re going to get a very large amount of stock at a lower price rather than a lower amount of stock at a higher price. Just a thought but it does make a lot of sense. Once the last acquisition is completed and in then from that point forward I think we may see this really start to takeoff. That could be what’s holding us back. Ultimately, a lot of people forget that the market price of the stock has a direct effect on negotiations of acquisitions.
I agree with some of that. However I do not agree with the reverse split. Why? Well in my research just the filing of the up list sec paperwork alone should get us up and over what we need for the up list. Secondly with less then 25 million shares out and 500 million authorized they have plenty of room to give equity with new acquisitions. Prior to our original reverse split Read had diluted us into oblivion for his out of line salary and greedyness. Understanding they needed to do these acquisitions and needed that equity it makes sense why they did the original reverse since we were almost out of authorized shares. That situation is now no longer a factor. Plus, the majority of the company is held by insiders unlike before with new large positions from unaffiliated owners of the previous acquired companies who also have a voice. Because of this, they are not going to be easily convinced to change the share structure after the recent acquisitions. This is probably the biggest point.. All of these things add up to a situation where I think eventually this thing will organically grow in a big way without the need for a reverse split. Especially since on top of everything stated above it would disenfranchise the 500+ existing retail stockholders as well who will go out publicly griping about it considering RCAT had pretty much destroyed the original stockholders equity down to almost nothing. Jmho. Glta.
Jonathan Read's Gresham Subsidiary Just Completed Acquisition
https://ih.advfn.com/stock-market/AMEX/dpw-DPW/stock-news/83793072/dpw-holdings-gresham-worldwide-global-defense-bu
Specifically related to electronics? May be affiliated to here based on what they do and how it could relate to controllers, Drones, and other aspects of drone systems down the road for .GOV contracts. Of course, no proof of this at this point, but just watching this all expand in both companies while trying to connect the dots...
RCAT, Thompson, etc. if you are listening out there, you need to do whatever you have in your quiver right now and catch this wave! If you have an uplist application or the final big merger to announce you need to do it soon before the winds change and be careful about dumping on it with your conversions! At least until it gets going so that you can help some of your long term 500 stock holders finally recover! PLEASE LET THE STOCK BREATH!
Ran like an OTC SOB based on a fair book value considering the debt!
I think quicker then that below 3 IMHO. Guess we will see. Sure lots of shorts are going jump all over this to sell it back down now.
Yes, will eventually pull back into the 1s again at some point. Wash, rinse, repeat.
Here here and raise a glass. The green wave will hit us soon we hope!
Look At What Happened To Johnathan Reads Company Today
Really think we are on the verge of similar here at RCAT!
Read obviously has linked these two companies together being past CEO here at RCAT as well as currently on the RCAT BOD.
https://investorshub.advfn.com/boards/board.aspx?board_id=5708
Craziest part of all this is the after hours trading! Was watching it and it is huge.
Most of the move was based on EV Charging operation at Coolsys expansion. Been awhile since we have seen anything from Reads Gresham subsidiary specifically. With the low float here some big PRs would be game changers. And if the Dr. is right about GoChain the timing could not be more perfect.
Well, I told you I am not happy either. I think this will eventually pay off in a big way and work out. Just trying to understand why they are not getting the attention and investment like they should with two significant mergers. Like I said in a recent post, some of it I think is RCAT is just dropping the ball on bringing new mainstreet or even more importantly larger investors into this stock. They need to get some larger investors to invest even shorter term in the common stock. They are not doing this thus it all relies on the main street investors. It does not help when Thompson said things like that he is to busy running the company to worry about the stock. That does not help at all...
Another interesting article that would go in line with the food resupply system for certain countries or regions as it seems like it could be something that would be related to that also on the government side. As well as the large commercial side for bigger products. And I agree, this is just shit I find on the Internet just like you! It does seem to imply though that in the next year or two this industry is really going to explode. Based on combining all these articles together accordingly.
https://www.zerohedge.com/technology/navy-test-resupply-drones-warships
Thanks for sharing the DD that we will make sure not to listen to any part of whatsoever. Any partnership signed has a purpose. Have to look to the future when you invest not present. Most people forget that part and are impatient. Most of us have been waiting here for years. So continuing to wait is just part of the drill at this point. Regardless the future looks very promising at RCAT. Let’s hope they allow us to come along for the eventual ride in a meaningful way before our holdings become insignificant.
Makes you wonder also, after the reverse merger into TFVR, how they showed pictures of their "mining equipment" if they bothered to keep those mining since then. If so, may have actually built up a small stockpile of coins since there was a significant amount of miners at TFVR. Read a story today about how there is massive money coming into stocks post election since the coming months are normally major bull months. I am hoping maybe they were planning on this also and a well timed uplist to Nasdaq or NYSE during this time could catch a huge wave of investment and capital influx coming into the overall market....
Totally agree.
That is why when it comes to the big investments in life that really pay off big, they always say if everyone knows about it, it is already to late!
REDCAT COMPLETES MERGER WITH FAT SHARK
Expands Presence In Drone Industry
https://ih.advfn.com/stock-market/USOTC/red-cat-pk-RCAT/stock-news/83630832/current-report-filing-8-k
Red Cat Completes Fat Shark Acquisition, Expanding Presence in FPV Drone Market
ORLANDO, Fla. , Nov. 9, 2020 /PRNewswire/ -- Red Cat Holdings, Inc. (OTC: RCAT) ("Red Cat" or the "Company"), a leading brand in the drone industry, today announced completion of the acquisition of Fat Shark Holdings, Ltd. ("Fat Shark"), the leading provider of headsets and goggles for professional FPV (First Person View) racers and drone pilots with an estimated market share of 85%.
Red Cat Holdings + Fat Shark + Rotor Riot
Fat Shark generates approximately $7 million (unaudited) annual revenues, which will significantly increase the reported revenue for the combined companies. This transaction follows the Company's acquisition in January 2020 of Rotor Riot, another leading provider of FPV and drone racing hardware.
"This has been a transformational year for Red Cat," stated Jeff Thompson , CEO. "As we establish our leadership position through our acquisitions, we expect to take significant market share of the drone market that analysts currently forecast will grow to $42.8 billion by 2025." "Fat Shark acquisition adds a fully-integrated supply chain, experienced international manufacturing and sourcing capabilities, and design and development resources. Fat Shark's new digital products provide a platform to fuel our future growth as the industry continues to evolve."
"We are excited to join the Red Cat team," added Greg French , founder and chief technology officer of Fat Shark. "Combining our innovative technology with the marketing acumen of Rotor Riot and the financial support of Red Cat will enable us to accelerate growth in the quarters ahead."
"The drone industry is poised for rapid growth in the years ahead, and we are now extremely well positioned to capitalize on a wide variety of opportunities," commented Chad Kapper , CEO of Rotor Riot. "With the addition of Fat Shark we have paired a quality hardware base with Rotor Riot's robust educational/entertainment brand. Fat Shark's new line of digital headsets with their 'out of the box' functionality meshes perfectly with our popular 'Ready To Fly' (RTF) packages, and we are excited to leverage the strong brand recognition Rotor Riot enjoys while presenting Fat Shark on our YouTube channel and our digital store at www.rotorriot.com ."
You said this in your post:
"it gives us access to a large chip manufacturer and customer base."
IMHO I believe that RCAT is slowly working to create a full service manufacturing and training company to service the US Government and allied market. Still see that coming and as I have said multiple times, the big chunk of the market is still in government. Just a matter of time I think.
However, I will say, not surprising with Read still involved, that, as in the past which hurt this stock, it looks like they are not letting this stock finally breath/rise and have allowed SOME investor dumping yet again although it is controlled at this low level that is crushing an already fragile stock with a history of grift they have to eventually overcome. They should have known they needed to control this and stay above that pre split $4 mark until we had a better investor reputation and a current base that was happy which would then act as cheerleaders making RCAT also attractive to new investors as well. THE BOTTOM LINE IS PEOPLE DO NOT BUY STOCKS THAT NEVER GO SIGNIFICANTLY UP ON OTC FOR MANY MANY YEARS! It is a well known fact. They should be focusing more on increasing stock value also rather then tamping it down for capital until it is in a much more known, visible, and stable position in the investor community as well. They are forgetting yet again what many of the 500 long term holders here have been through investment wise since losing 90% of the value because of Read. This is even prior to them reverse splitting 1200 to 1 to $4 then having this drop another 75% since then to its current level. Many people here have almost been wiped out and are not happy thus why there are about five people who regularly post here. This fact does not exactly build investor confidence just based on a simple chart and investor sentiment. That is a huge mistake IMHO because it does not help things with them ignoring this at this point. There has to be some big money out there they can get to invest here to start this rising. Let us hope eventually they figure some of these things out so we all win.
The price of this stock is not the issue at all. There are almost 5k OTC Pink stocks that have a stock price of $1 or higher. Some are much much higher! See for yourself and chose pink and minimum price in the screener of $1 that I have added a link to below.
The price is not uncommon at all since in the end it is all about the share structure. Some companies have many billions of shares and are trips at .001 with a much larger market cap because of the OS. IMHO this is more about this company not trying hard enough to market the stock to smaller non accredited investors at this point or convincing larger accredited investors to take larger positions and invest for even the short term in the public float. Fortunately, once we would uplist or even SEC file to uplist, much of those problems should start to change hopefully. GLTA.
https://www.otcmarkets.com/research/stock-screener
If RCAT has a couple Big PRs in their future of new contracts or revenue streams that are significant that DOES drive a mass of volume, there is just not a ton of this stock laying around on the open market at this point because of all the lock ups that Thompson has negotiated into the deals. My guess is the structural lock ups are there because they know there are some big things coming in the next 12 months and want to let the PPS finally breath once the volume comes. Right now though, honestly, I am as perplexed as you are that we do not have a ton more shareholders showing up here who are new. This considering obviously Rotor Riot as well as Fat Shark are well known in the industry. Of course, an uplist to NYSE or NasDaq would fix this problem very quickly IMHO. Maybe that is the thinking here. Could be closer then we think to achieving that based on that video conference a few months ago. They seemed to imply they were close to qualifying at that point outside of the ageing issue and audited financials. Now that they have Fat Shark seems like they would be in good position as a Nasdaq Capital Markets stock. JMHO. GLTAL.
Give it a few days. IMHO, with the dow skyrocketing today any major money out there interested in this may be focused on getting in on bigger fish. I will be with you that this is a dud if we see no significant movement by the EOW from this PR.
Looking over that IMHO, RCAT, from here forward, barring some major national catastrophe, this investment is just a matter of time until we have a mass influx of investment on the open market. Also, BTW, good find! Wondering if they estimated the valuation based on before FatShark or took that into account also. Either way, I see some major revenue growth here soon. Pretty obvious with all the things they have going here at once, with some of it seriously exploding..even outside of the Dronebox project, this thing is on track to really be a major player in this industry.
Awesome! Figured it was coming they just took a couple extra days. Guessing based on the really big volumes when they announced the merger next week will be a good one hopefully and hopefully even bigger!
I think they said they had been speaking with NASDAQ and NYSE directly in the video conference call. So could be either one I am expecting?
Unless I am wrong, it appears this is a final cog before officially announcing the finalization of the Fat Shark Merger. Yes, to sell his company Thompson and the Fatshark owner diluted us which is understandable. However, the first notable statement that really stuck out at me regarding all this was, again, the lockup of the shares issued. This was a critical statement and important for two reasons:
1. Only 20% of the shares can be sold over the next year and after that there are still significant restrictions long term for selling.
2. For those 20% shares to be sold, they must be sold in a "private" transaction with the same terms as the original agreement. To me this means they will not be dumped on the public market but MUST be a transaction with more then likely an accredited investor down the road once this puppy starts rolling price and revenue wise. Thus, we are still looking at a super small float and these shares, no matter who owns them, can not be sold on the public market until 1 year from the closing date. And even at that point, depending on the daily volumes, they still can not dump them on the public market and crash the price due to protection regarding a cap of 10% of the daily volume averages over 10 days prior that can be sold. Thus, Thompson is VERY MUCH SO protecting the stock price even in this transaction which is very good for us! At least that is the way I interpret the transaction which could be wrong.
Here is the quote:
"Mr. French has agreed to certain restrictions on the disposition of the shares received during for a period of two years following closing (the “Lock-Up Agreement”). Under the Lock-Up Agreement, a limit of up to the greater of 20% or $1,000,000 of the shares received may be sold prior to the 12 month anniversary of the closing in privately negotiated transactions (provided the purchaser enters into a joinder agreement and agrees to be subject to the same restrictions on such shares). Following the first year after closing, up to 10% of the average daily volume of the common stock during the prior 10 trading days may be sold."
Plus, I agree with you that the fact that they actually registered the securities rather then using the exemption, based on their size and listing as an OTC Pink, really implies they are headed toward up listing here at some point and are serious about it.
Anyway, as Sam said, this thing is long but that is my first take on it after scanning through it. They have also stated tons of threats in the filing. However, that is customary and they have stated in most of their major filings about the potential of another split. They also say they may go out of business!LOL IMHO they are just covering bases legally since we live in VERY uncertain times and it is totally normal for companies like this to do so even in less uncertain times.
I also look forward to discussing this over the weekend and discussing the filing. However, I really doubt all of these people involved would be wasting their time doing mergers, and taking stock for those mergers, if they did not want the stock price to eventually rise significantly from where it is now, not just to up list, but also for their own holdings to grow in value.
And, as I said above, every stock issuance and transaction if you truly break it down since the reverse split and original merger, Thompson and the BOD is very much building in protections of the stock price with both float control and controlling the threat of dumping large amounts of stock onto the public market destroying the stock value. As I have said, unlike us, they know all of the irons in the fire and where they are at currently. And through their action at this point, I am guessing they know the next year has a good chance of being amazing and they want to protect that first big spike in PPS and sustain it over that time at the very least so they can up list and then qualify for more of the large VC and Investment Bank money and be able to attract it with the share price and performance. So, overall, looks very good to me, and guessing we should get official conformation of the merger next week base don this filing of the registration of the securities that will be used to close he deal!
Wow, that is huge! Really surprised, based on researching what the racing actually entails, that it has that type of following. However, seeing the SIM and watching some of the past races looks very life like and reactive. Pretty cool.
On another note, we should hear based on the initial filing about the finalization of the merger tomorrow or at the latest some time next week. As you, thinking with the float and maybe eyes starting to focus more here we could hit 3-5 pretty easy or even much higher if it goes through which is a very realistic run on an OTC stock. For example, this went from around .01 to .18 in a few days when they announced the shift to bitcoin so that is something to consider. JMHO and of course only speculation. GLTA.
Good post! Also think there could be pending contract announcements for both Drone Box as well as Rotor Riot coming as well. Large contract announcements usually do very good things for stock prices.
Best part over all though is that, as you stated, this particular company has MANY irons in the fire and there could be a very good run because of it over the next 3-6 months. However, as you also stated, the election is a wild card in all this. Nice part though is market stability wise which will help is that many of the destabilizing late counting plans in different states seem to now be off the table due to SCOTUS decisions. That should help some because honestly looked like we might be waiting months where now it looks like it could potentially maybe be weeks at the most. Guess we will see but we can hope that is the case.
The trading really seems to be signaling we are prepped for a big breakout this week once the news hits of the closure of the FatShark merger. Volume is picking up as well! Great days here ahead!
I really think 2021 is going to be a great year overall for the Drone and related drone market growth wise specifically for US based companies. Seems like many times people are to far ahead of the big spike(like Bitcoin for example) and then it comes around again down the road 5 years with the real lift and massive growth. IMHO the drone market is at that point in history right now and about to take off. Guess we will see but it definitely says something when the FAA is working on building a large management system and large commercial interests like Amazon and UPS are on the verge of implementing large scale operations soon.
Who knows. However, with IPO regulations and the length of time to get all that approved by the SEC under the current environment I tend to disagree with you. This is why so many Chinese companies in the past have used reverse mergers to go public in the US. It all depends on how quickly they need to do it plus this would circumnavigate a lot of the SEC scrutiny. A statement about wanting to uplist soon is also another breadcrumb regarding this.
The thing also you’re missing Imho is the fact that this would not be about being traded on a public exchange or the US stock markets. It also has nothing to do with raising capital if it happened. The goal would be basically to have a US entity stamped on DJI with as little government and SEC scrutiny as possible as quickly as possible so they could continue to have access to US government contracts and revenue in some shape or form. However, I will admit it’s a longshot and we can agree there. But under the current environment considering how much of the market is in the government sector in the United States(which. DJI is poised to lose a massive amount of) I really do see an outside chance you could see a company like DJI at the very least take a minority interest through some maneuvering in a company like RedCat. The move would be with the sole purpose of using Redcat in someway as a vehicle to continue to sell to the government market here. This would be no different then what Chinese businesses overall have done to get around embargoes and bans for years in other industries and sectors. Jmho. GLTA
DJI is a Chinese company. RedCat is a US company. Chinese companies have been locked out of 70% of the US drone market(government, military, state, local etc) based on national security concerns. Maybe a workaround through red cat is in the works so they can continue to have access to these revenues? Good question. The DD on Fatshark and finding out their headquarters is in the same city as DJI I was not aware of. Definitely makes the link considering they are also sponsoring tons of rotor riot stuff as well.
Website To Watch-Shows Heavy VC Investment In Government Drone Security As Well As The Commercial Sector This year
https://interdrone.com/launchpad/venture-capital-feed
Looks like some of these(especially the latest Fly-Vekter) show some significant VC investment this year in the Government drone space for Military and government security. Seems like Redcat is slowly shaping up to fit right into this industry sector as well in the future. All it would take is a couple of good sized government or other related sub-contracts being announced and I am guessing we would see some massive stock appreciation. Of course, that is just my opinion but makes sense to me.
Yup. Typically otc does not have after hours trading but sometimes orders may not be recorded that were completed during the actual trade day or right after closing. Thus the occasional T trade.
Anyone see that form T trade at the end of the day for 1.4? Wondering if there is going to be something tomorrow or monday? It was only for 100 shares but was kinda weird.
https://ih.advfn.com/stock-market/USOTC/red-cat-pk-RCAT/trades