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Red Cat Holdings, Inc. (NASDAQ:RCAT) shares are trading higher Thursday after the company announced that its subsidiary, Teal Drones, has been approved and added to NATO support and procurement agency catalogue.

What To Know: The Black Widow System, developed by Teal Drones, is now included in the NATO Support and Procurement Agency (NSPA) catalogue. The designation allows NATO member nations and eligible partners to procure the drone system through NSPA-managed channels, including direct catalogue ordering and sponsored tenders.

Specific quantities, configurations and delivery timelines will be determined by end users under standard NSPA processes.

"Black Widow gives allied forces a rugged, rapidly deployable ISR capability with minimal training burden," said Geoffrey Hitchcock, Chief Revenue Officer at Red Cat. "Being available through NSPA simplifies cross-border acquisition and sustainment, helping customers move from requirement to fielding faster."

The Black Widow system is a mission-ready small uncrewed aerial system that was previously selected by the U.S. Army as part of its Short Range Reconnaissance program. It is designed for tactical intelligence, surveillance and reconnaissance, perimeter security and overwatch.

Red Cat noted the inclusion is based on a three-year contract with options for two additional years at NSPA's discretion.

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RCAT Price Action: At the time of writing, Red Cat shares are trading 23.42% higher at $10.52, according to data from Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.