Red Cat (RCAT) said Tuesday it supports the US Federal Communications Commission's move to block new approvals of foreign-made drones and components.
Following a review led by the White House, the FCC added foreign-produced uncrewed aircraft systems and UAS critical components to its Covered List, blocking new models from being imported or sold in the US while leaving existing authorized drones unaffected.
The list contains equipment and services deemed to pose "unacceptable risks to US national security and to the safety and security of US persons," the FCC said on Monday.
"This is a major moment for the American drone industry," Red Cat Chief Executive Officer Jeff Thompson said in a statement. "We applaud the Administration's decision to act with urgency."
Red Cat shares rose 4% in recent Tuesday trading.
Price: 9.59, Change: +0.37, Percent Change: +3.96
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