You said, "Additionally, Teal is a sinking ship by admission of investors selling their stakes, leaving the RCAT investors to pay for the parachute."
That is an unprovable opinion and conclusion. Why? I would want some of my original investment out of even a great investment for diversity as well as planting seeds in other places. Yours is not the only valid conclusion or opinion to why early angel investors sell.
Please show a link that is substantive proving that Teal contracts already in place and an expectation that future contracts will be substantially less or non-existant.
Please show a link that is substantive proving that Teal contracts already in place and an expectation that future contracts will be substantially less or non-existant.
The following clearly shows your statement of no synergies is also patently false. You sound more like a shorter than someone who has done indepth DD.
"Less than a year after scoring a landmark U.S. Defense Department contract, Utah’s Teal Drones will become the flagship portfolio company of Red Cat Holdings in an all-stock acquisition deal announced Tuesday.
Teal joins a quartet of independently operating innovation companies owned by publicly traded Red Cat, all doing work in the fast-advancing drone and drone-related technology sector. No public valuations or deal values were shared as part of the announcement.
"Teal founder and CEO George Matus said his company, founded in 2014, was considering a variety of options amid new levels of interest generated by Teal’s selection as one of only five drone manufacturers approved by the Defense Department to provide the remote-controlled vehicles to the armed services and other federal agencies. Red Cat, he said, brings just the right mix of talent, experience and funding opportunities to help propel Teal to the next level."
“We spent some time thinking about what we wanted to do ... and what was going to give Teal the greatest opportunity in this market,” Matus said. “Red Cat’s proposal ... was the right combination of resources and capital access."
Matus said Teal has been ramping up production since the announcement of the new federal designation, and its drones are now in wide use by the U.S. military and numerous other agencies. And, he noted a wide range of private sector companies are also putting the advanced vehicles to work, with tasks ranging from keeping an eye on big infrastructure installations to cattle ranchers using the advanced flyers for herding and locating lost animals. Matus said plans are in place for the company to double its workforce in the next six months.
Red Cat CEO Jeff Thompson said Teal compliments and enhances his company’s current group of holdings that include Skypersonic, a remote inspection company; Dronebox, an analytics platform for cloud-based flight intelligence; Fat Shark, a drone imaging and communication company; and Rotor Riot, a lifestyle operation focused on the consumer market.
“Adding Teal to the Red Cat family is a natural expansion of the group deeper into the enterprise and government spaces.” Thompson said in a statement. “Teal’s Golden Eagle drone platform and its existing access to the Department of Defense combined with the market reach and experience of Red Cat should well-position the joint group for unbridled success as the industry grows.”
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