Unusual Machines, a drone technology developer acquiring the consumer operations of Red Cat, raised $5 million by offering 1.3 million shares at $4, the low end of the range of $4 to $6. The company offered 0.3 million more shares than anticipated.
Because the company has a market cap of less than $50 million at pricing, Unusual Machines will be excluded from Renaissance Capital's 2024 IPO stats.
In November 2022, Unusual Machines agreed to acquire the consumer division of drone company Red Cat Holdings (RCAT), which consists of subsidiaries Rotor Riot and Fat Shark Holdings. The transaction is expected to close simultaneously with the IPO. Fat Shark designs and manufactures ultra-low latency video goggles for first-person view drone pilots, and Rotor Riot's principal business is the operation of a drone-focused e-commerce marketplace.
Unusual Machines plans to list on the NYSE American under the symbol UMAC. Dominari Securities, R.F. Lafferty & Co., and Revere Securities acted as joint bookrunners on the deal.
