Red Cat Holdings (NASDAQ: RCAT) experienced a significant stock surge of over 20% on October 3, 2025, following a successful $172.5 million public offering and a strategic AI partnership with Safe Pro Group. The company also announced an $800,000 order for components for its FANG drone systems. The raised funds will be allocated to developing an unmanned surface vessel division, marking an expansion from its primary aerial drone operations. Additionally, the Black Widow drone platform will now feature AI-powered image analysis for real-time explosive threat detection, having recently gained approval for inclusion in the NATO Support and Procurement Agency catalogue.