Unusual Machines, a drone technology developer acquiring the consumer operations of Red Cat, announced terms for its IPO on Wednesday.
The San Juan, Puerto Rico-based company plans to raise $10 million by offering 2 million shares at $5. At the proposed price, Unusual Machines would command a market value of $35 million.
Because the company is expected to have a post-IPO market cap of less than $50 million, Unusual Machines will be excluded from Renaissance Capital's 2023 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 was founded in 2019 and plans to list on the NYSE American under the symbol UMAC. ThinkEquity is the sole bookrunner on the deal.
