Defense Tech Firm Red Cat Reels Following Short Seller Allegations

Shares of defense technology company Red Cat Holdings experienced a sharp decline on Friday after a short seller published a damaging report. The firm, Fuzzy Panda Research, accused the drone manufacturer of systematically misleading investors regarding military contracts and product capabilities. This triggered a sell-off that sent the stock tumbling nearly 9%, casting severe doubt on the company’s credibility and raising questions about whether its recent success was built on a solid foundation.

The allegations strike at the heart of Red Cat’s investment story: its prestigious contract with the U.S. Army. Fuzzy Panda’s research contends that the Low-Rate Initial Production (LRIP) agreement is valued at just $12.9 million. This figure is approximately 60% lower than the $30 to $55 million range previously communicated... Read more...