Red Cat Holdings, Inc. ( RCAT ) shares are trading higher Monday on possible continued momentum after Secretary of Defense Pete Hegseth announced efforts to fast track drone production.

What To Know: On Thursday, Hegseth issued a directive allowing military commanders at the rank of colonel or Navy captain and above to independently purchase and test small drones—specifically Group 1 and 2 unmanned aircraft systems.

Furthermore, the order reclassifies these drones as "consumable weapons," removing them from traditional aircraft tracking systems and accelerating the deployment of emerging tech, including 3D-printed and off-the-shelf models.

The directive also rolls back several outdated Pentagon policies that Hegseth said were stalling innovation. It requires all military branches to conduct drone combat simulations and coordinate with the FAA to expand flight ranges, fast-track spectrum approvals and create new testing zones for swarm tactics, live-fire drills and joint-force exercises.

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RCAT Price Action: At the time of writing, Red Cat ( RCAT ) stock is trading 15.7% higher at $9.91, according to data from Benzinga Pro.

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