Red Cat Holdings, Inc. (NASDAQ:RCAT) shares rose Wednesday after the company was awarded Customs and Border Protection contract worth up to $90 million over the five years.
The Puerto Rico-based company a hardware-enabled software provider to the drone industry, today announced that its subsidiary Teal Drones has been awarded a firm-fixed-price, multiple award blanket purchase agreement (BPA) by the United States Customs and Border Protection as one of five contractors.
Through the BPA, Department of Homeland Security agencies can place orders for unmanned aircraft systems. The drones will provide supplemental airborne reconnaissance, surveillance, and tracking capability to enhance situational awareness for field commanders and agents in areas that lack nearby traditional surveillance systems or available manned air support.
"We are honored Teal was selected to provide U.S. manufactured drones that meet the rigorous technical requirements of the Department of Homeland Security. This award is a milestone achievement for George Matus and the entire Teal team, and to the foundation they have built over the past decade in arriving to this point," commented Red Cat CEO Jeff Thompson.
"Given the security mandates within the Department of Defense and Federal Government, as well as the recently passed infrastructure bill that has a 'Build America Buy America' mandate, we are confident in our ability to offer domestically-sourced drone solutions and services across both Enterprise and Government applications."
RCAT shares captured 50 cents, or 27.2%, to $2.33.
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