Why Red Cat Stock Crashed Today
Up 66% over the past year, Red Cat Holdings (NASDAQ: RCAT) stock gave back much of its gains this morning, falling 15.2% through 11:50 a.m. ET after announcing plans to issue and sell 23.9 million new shares of stock in an effort to raise $225 million (before fees).
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Two months ago, just after Red Cat's most recent "earnings" report (the quote marks are because Red Cat didn't actually "earn" anything, but lost $0.17 per share), I posed the question: "At what point production scale will allow Red Cat to pivot from losing money... to earning profit"?
Source Fool.com
