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U.S. Army Short Range Reconnaissance Program Teal Drones

New Contract Aims to Enhance Battlefield Capabilities

Red Cat Holdings, Inc. (Nasdaq: RCAT), through its subsidiary Teal Drones, has been selected as the production provider for the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record. This announcement follows a rigorous test and evaluation process conducted by the Army Project Management Office for Uncrewed Aircraft Systems, the Army Maneuver Battle Lab, the Army Test and Evaluation Command, and the Army Operational Test Center.

U.S. Army Short Range Reconnaissance Program Teal Drones

Delivering Next-Generation sUAS

Teal’s next-generation small uncrewed aerial systems (sUAS), named Black Widow and WEB, stood out in the selection process due to soldier feedback, technical performance, scalability, and cost. George Matus, founder of Teal and CTO of Red Cat, described the achievement as a pivotal moment:

“This is a powerful moment in time, coming after five years of blood, sweat, and tears put into SRR by our incredible team. The long-awaited production selection marks a new era for our company and the future of American drones.”

Matus added that the team’s priority is to begin ramping production to meet the Army’s acquisition objective of 5,880 systems over the next five years, though this target is subject to change.

Enhancing Tactical Capabilities

Jeff Thompson, CEO of Red Cat, emphasized the transformative role of drones in modern warfare:

“Warfare has undergone a dramatic transformation over the past two years, with a significant shift towards drone technology, exemplified by the SRR Black Widow. It is an honor to support the U.S. Army by delivering the Black Widow to our warfighters. We believe this advanced technology will enable the Army to shape the battlefield, save soldiers’ lives, and serve as a powerful tool in their arsenal.”

Retired Four-Star Army General Paul Edward Funk II, a Red Cat board member, highlighted the importance of data integration and portability in modern military operations:

“Operational success today depends on the ability to seamlessly move data across the battlefield. From a tactical perspective, small unmanned aerial systems that are rucksack portable are playing a vital role in Intelligence Surveillance & Reconnaissance, as well as surgical strike capabilities based on the real-time needs of the warfighter.”

Broader Implications for U.S. Defense

The SRR award represents a significant step in addressing the evolving needs of the U.S. Army and broader Department of Defense (DoD). The selection reflects Red Cat’s focus on advancing drone technologies, as evidenced by its acquisition of FlightWave Aerospace and the development of the ARACHNID™ family of systems.

Teal Drones also benefits from an expanded partnership with Palladyne AI Corp., integrating artificial intelligence capabilities such as autonomous operation and real-time data sharing into its platforms. Ben Wolff, CEO of Palladyne AI, stated:

“We are extremely proud to be working with Teal on integrating our Palladyne Pilot artificial intelligence software into Teal’s drones and look forward to this expanded relationship to help deliver a best-in-class experience for their defense, public safety, and commercial customers.”

Industry Calls for Accelerated Investment

In response to the contract, the Association for Uncrewed Vehicle Systems International (AUVSI) President and CEO Michael Robbins called for urgent action to strengthen the defense industrial base:

“AUVSI urges the U.S. Army and the broader DoD to act immediately by placing large-scale orders for uncrewed systems, including SRR drones. This decisive action is critical to ensuring the United States not only keeps pace with rapidly evolving warfare but also strengthens its defense industrial base and meets the pressing demands of modern wars of attrition.”

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