Red Cat shares surged 30,6% in premarket trading

Red Cat shares surged 30,6% in premarket trading.

Red Cat Holdings says that its subsidiary Teal Drones has been awarded a firm-fixed-price, multiple award blanket purchase agreement(BPA) by the United States Customs and Border Protection as one of five contractors.

The BPA has an estimated value of $90 million in total over a 5-year ordering period.

Through the BPA, Department of Homeland Security agencies can place orders for unmanned aircraft systems.

The drones will provide supplemental airborne reconnaissance, surveillance, and tracking capability.