Rekor Systems Announces Full Exercise and Closing of Underwriters' Option in Connection with its Underwritten Public Offering of Common Stock

Rhea-AI Summary

Rekor Systems, Inc. (REKR) announced the completion of the sale of 1,500,000 shares of common stock at $2.50 per share, generating approximately $3.5 million in net proceeds. The offering, including the full exercise of the underwriters' option, totaled around $26.4 million. William Blair and Northland Capital Markets played key roles in the offering process.

Financial Analyst

The completion of a secondary public offering, as announced by Rekor Systems, Inc., represents a strategic financial maneuver that has immediate and tangible effects on the company's capital structure. The infusion of approximately $3.5 million in net proceeds from the underwriters' option exercise, totaling around $26.4 million for the entire offering, provides Rekor with a bolstered cash position. This capital can be pivotal for funding ongoing operations, research and development and potential expansions.

From an investor's standpoint, the offering price of $2.50 per share gives a snapshot of market valuation at the time of the sale. It is crucial to compare this price point with the current trading levels and historical performance to gauge investor sentiment and potential dilution effects. The involvement of William Blair as the sole book-running manager and Northland Capital Markets as the lead manager indicates a level of confidence in the offering's execution. However, shareholders should be aware of the dilutive impact of the additional 1,500,000 shares on their equity stake and earnings per share (EPS).

Market Research Analyst

Rekor Systems' offering comes at a time when roadway intelligence technology is gaining significant traction due to the push for smart city infrastructure and the advancement of autonomous vehicles. The capital raised could position Rekor to capitalize on market trends by investing in innovative technologies and pursuing strategic partnerships or acquisitions. The successful exercise of the underwriters' option suggests a positive market reception and could be indicative of investor confidence in Rekor's growth prospects.

However, it is essential to monitor the deployment of these funds to ensure that they are allocated towards growth-generating initiatives. Investors should look for updates on how Rekor plans to utilize this capital to maintain competitiveness and drive shareholder value. The timing of this offering and the subsequent deployment of capital could also be critical, as it may coincide with industry cycles and technological advancements.

Legal Expert

The offering was conducted under a shelf registration statement on Form S-3, which expedites the process of issuing securities and provides companies with flexibility in capital raising. For Rekor, this means the ability to respond quickly to favorable market conditions or funding needs. The legal framework of such offerings is stringent, with the SEC requiring detailed disclosures to protect investors. The final prospectus supplement and accompanying prospectus are key documents that outline the offering's terms and provide transparency.

It's important for current and potential investors to understand that such offerings are subject to regulatory compliance and that the 'no sale' clause in certain jurisdictions ensures adherence to local securities laws. This compliance is critical to avoiding legal repercussions and maintaining the integrity of the offering process.

COLUMBIA, MD / ACCESSWIRE / February 13, 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 that it has completed the sale of an additional 1,500,000 shares of common stock at a price to the public of $2.50 per share, pursuant to the full exercise of the option granted by the Company to the underwriters in connection with its previously announced public offering of common stock. The net proceeds to the Company for the exercise in-full of the underwriters' option, after deducting the underwriting discounts and commissions and estimated offering expenses payable by the Company, is expected to be approximately $3.5 million, or approximately $26.4 million in aggregate for the public offering including the full exercise of the underwriters' option.

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 shares of common stock did Rekor Systems, Inc. (REKR) sell?

Rekor Systems, Inc. (REKR) completed the sale of 1,500,000 shares of common stock.

At what price per share did Rekor Systems, Inc. (REKR) sell the common stock?

Rekor Systems, Inc. (REKR) sold the common stock at a price of $2.50 per share.

How much net proceeds did Rekor Systems, Inc. (REKR) generate from the sale?

Rekor Systems, Inc. (REKR) generated approximately $3.5 million in net proceeds from the sale.

Who acted as the sole book-running manager for the offering?

William Blair acted as the sole book-running manager for the offering.

Which company acted as the lead manager for the offering?

Northland Capital Markets acted as the lead manager for the offering.