Red Cat Holdings, Inc. ( RCAT ) shares are trading down on Thursday after the drone company filed a $150 million stock offering to raise money for its new maritime division, which focuses on unmanned surface vessels.

What To Know: Shares of Red Cat ( RCAT ) dropped 10% after the company announced a proposed public offering after the market close on Wednesday, according to Benzinga Pro. The stock has continued to face selling pressure on Thursday amid the pricing of the offering.

Red Cat ( RCAT ) said it will offer approximately 15.63 million shares of common stock at a price of $9.60 per share. The company has also granted the underwriters the option to purchase, within 30 days, an additional 2 million shares.

Red Cat ( RCAT ) anticipates $150 million of total gross proceeds from the offering, which is expected to close on or around Friday. The company expects to use the proceeds for general corporate and working capital, including but not limited to operating expenditures related to its new unmanned surface vessel division.

RCAT Price Action: Shares of Red Cat ( RCAT ) were trading at $10.25, down about 9% at the time of publication Thursday, according to Benzinga Pro. Red Cat ( RCAT ) has a 52-week high of $15.27 and a 52-week low of $2.31.

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Image: Drone-Photo via Shutterstock