Shares of Red Cat Holdings Inc. (RCAT) are surging 15.02% in pre-market trading on Thursday, following the announcement that its subsidiary Teal Drones' Black Widow System has been approved and added to the NATO Support and Procurement Agency (NSPA) catalogue.

The Black Widow System, developed by Red Cat's subsidiary Teal Drones, has been included in the NSPA catalogue with a 3-year contract. This approval marks a significant milestone for the company, as it opens up potential opportunities for procurement by NATO member countries and NATO allies.

This development could potentially lead to increased sales and visibility for Red Cat Holdings in the defense sector. The inclusion in the NSPA catalogue not only validates the quality and capabilities of the Black Widow System but also positions Red Cat to potentially secure contracts with various NATO-affiliated organizations and countries, which could drive future growth and revenue for the company.