Rekor Systems Announces Closing of Follow-On Public Offering of Common Stock

Rhea-AI Summary

Rekor Systems, Inc. (REKR) completes a public offering of 10,000,000 common shares at $2.50 per share, expecting to raise approximately $22.9 million. The underwriters have an option to purchase an additional 1,500,000 shares. William Blair and Northland Capital Markets played key roles in the offering.

Financial Analyst

The completion of Rekor Systems' underwritten public offering of 10 million shares at $2.50 each, generating net proceeds of approximately $22.9 million, signifies a substantial capital influx for the company. This capital raise is poised to bolster the company's balance sheet, potentially funding further research and development, scaling operations, or paying off existing debts. The additional 30-day option for underwriters to purchase up to 1.5 million shares could provide further financial flexibility, indicating a potential over-subscription scenario which often reflects investor confidence.

From an investment standpoint, the offering price represents a critical indicator of current market valuation. Investors should consider the offering's pricing in relation to the company's historical stock performance and industry benchmarks. Moreover, the involvement of William Blair as the sole book-running manager and Northland Capital Markets as the lead manager may add a layer of credibility to the offering, possibly attracting a broader investor base.

Market Research Analyst

Rekor Systems' positioning within the roadway intelligence technology sector is pivotal, as this industry is expected to grow significantly due to increasing demands for smart city infrastructure and traffic management solutions. The capital raised through this stock offering could enable Rekor to invest in strategic initiatives, such as expanding their product portfolio or entering new markets, which could enhance their competitive edge. Additionally, the timing and success of the offering may reflect market sentiment towards the sector and the company's growth prospects.

It is essential to analyze the market's reception of this offering. If the stock price remains stable or increases post-offering, it could suggest investor confidence in Rekor's growth trajectory and the perceived adequacy of the raised capital in funding its strategic plans. Conversely, a decline could indicate concerns over potential dilution or skepticism about the company's ability to effectively deploy the capital.

Legal Expert

The offering's execution under an effective shelf registration statement on Form S-3 indicates Rekor Systems' compliance with SEC regulations, providing a streamlined process for the company to access capital markets. This approach allows for timely capital raising without the need for a new registration statement for each offering. However, investors should be aware of the legal stipulations that accompany such offerings, including the final prospectus supplement which details the terms and risks associated with the investment.

Furthermore, the legal framework surrounding public offerings necessitates that the securities cannot be sold in any jurisdiction where such an offering would be unlawful prior to registration or qualification under the relevant securities laws. This legal compliance ensures the protection of both the company and the investors and it is crucial for potential investors to understand these regulations before participating in the offering.

COLUMBIA, MD / ACCESSWIRE / February 9, 2024 / Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor" or the "Company"), a leader in developing and implementing state-of-the-art roadway intelligence technology, today announced the closing of its previously announced underwritten public offering of 10,000,000 shares of its common stock (the "Common Stock") at a price to the public of $2.50 per share. The net proceeds to the Company from this offering are expected to be approximately $22.9 million, after deducting the underwriting discounts and commissions and other estimated offering expenses payable by the Company. In addition, the Company has granted the underwriters a 30-day option to purchase up to 1,500,000 additional shares of Common Stock.

William Blair acted as sole book-running manager for the offering. Northland Capital Markets acted as lead manager.

The securities described above were offered pursuant to an effective shelf registration statement on Form S-3 that was filed with the U.S. Securities and Exchange Commission (the "SEC") on September 10, 2021 and declared effective on September 23, 2021. A final prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering was filed with the SEC on February 8, 2024. The final prospectus supplement and accompanying prospectus relating to the offering may be obtained by contacting William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, Illinois 60606, by telephone at (800) 621-0687 or by email at prospectus@williamblair.com; or by accessing the SEC's website at https://www.sec.gov/.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Rekor Systems, Inc.
Rekor Systems, Inc. (NASDAQ:REKR) is a leader in developing and implementing state-of-the-art roadway intelligence systems using AI enabled computer vision and machine learning. As a pioneer in the implementation of digital infrastructure, Rekor is collecting, connecting, and organizing the world's mobility data - laying the foundation for a digitally-enabled operating system for the roadway. With our Rekor One® Roadway Intelligence Engine at the foundation of our technology, we aggregate and transform trillions of data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power our platforms and applications. Our solutions provide actionable insights that give governments and businesses a comprehensive picture of roadways while providing a collaborative environment that drives the world to be safer, greener, and more efficient.

Forward-Looking Statements
Except for historical information, certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to risks, uncertainties and assumptions about Rekor and its business. Such forward-looking statements involve substantial risks and uncertainties that relate to future events and the actual results could differ significantly from those expressed or implied by the forward-looking statements. Any forward-looking statements are based on Rekor's current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Rekor makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances that may change, except as required by law. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Rekor's business in general, please refer to the "Risk Factors" section in Rekor's effective shelf registration statement on Form S-3 filed with the SEC on September 10, 2023 and declared effective on September 23, 2021, including the documents incorporated by reference therein, including its Annual Report on Form 10-K filed with the SEC on March 29, 2023 and its Quarterly Report on Form 10-Q filed with the SEC on November 14, 2023.

Media & Investor Relations Contact:
Rekor Systems, Inc.
Charles Degliomini
ir@rekor.ai

SOURCE: Rekor Systems, Inc.

View the original press release on accesswire.com

How many common shares were offered by Rekor Systems, Inc. (REKR) in the public offering?

Rekor Systems, Inc. (REKR) offered 10,000,000 common shares in the public offering.

At what price per share were the common shares offered by Rekor Systems, Inc. (REKR) in the public offering?

The common shares were offered by Rekor Systems, Inc. (REKR) at a price of $2.50 per share in the public offering.

How much is the expected net proceeds to Rekor Systems, Inc. (REKR) from the public offering?

Rekor Systems, Inc. (REKR) expects to raise approximately $22.9 million as net proceeds from the public offering.

Who acted as the sole book-running manager for the offering by Rekor Systems, Inc. (REKR)?

William Blair acted as the sole book-running manager for the offering by Rekor Systems, Inc. (REKR).

Which entity acted as the lead manager in the public offering by Rekor Systems, Inc. (REKR)?

Northland Capital Markets acted as the lead manager in the public offering by Rekor Systems, Inc. (REKR).

What option did the underwriters have in the public offering by Rekor Systems, Inc. (REKR)?

The underwriters had a 30-day option to purchase up to 1,500,000 additional shares of Common Stock in the public offering by Rekor Systems, Inc. (REKR).