Red Cat Holdings stock jumped 10% in pre-market trading Thursday after the company announced its Teal Drones Black Widow™ System has been approved for the NATO Support and Procurement Agency (NSPA) catalogue.

The approval enables NATO member nations and eligible partners to procure the Black Widow drone system through NSPA-managed channels, including direct catalogue ordering and sponsored tenders. This designation streamlines the acquisition process for allied forces seeking U.S.-manufactured drone technology.

"Black Widow gives allied forces a rugged, rapidly deployable ISR capability with minimal training burden," said Geoffrey Hitchcock, Chief Revenue Officer at Red Cat. "Being available through NSPA simplifies cross-border acquisition and sustainment, helping customers move from requirement to fielding faster."

The Black Widow is a small uncrewed aerial system (sUAS) that was previously selected by the U.S. Army as one of two vendors to manufacture systems for its Short Range Reconnaissance program. The drone weighs under 3 pounds, offers 45+ minutes of endurance, and comes equipped with advanced EO/IR sensors for day and night operations.

The system is designed for tactical intelligence, surveillance, and reconnaissance missions, as well as perimeter security and overwatch operations. It features NDAA compliance, encrypted communications, and a modular payload architecture that supports third-party integrations.

The NSPA catalogue inclusion is based on a three-year contract with options for two additional years at NSPA’s discretion, potentially opening new revenue streams for the Puerto Rico-based drone technology provider.