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

Rhea-AI Summary

Rekor Systems, Inc. announced the pricing of its underwritten public offering of 10,000,000 shares of its common stock at $2.50 per share. The offering is expected to close soon, and the company aims to raise significant funds through this public offering.

Financial Analyst

An underwritten public offering is a significant financial event for a company, often indicating a need for capital infusion for growth, debt reduction, or other strategic initiatives. The pricing of Rekor Systems' 10,000,000 shares at $2.50 each suggests a capital raise of $25 million before underwriting discounts and expenses. This influx of capital could be pivotal for Rekor's expansion plans or to bolster its balance sheet.

Investors should consider the dilutive effect of such an offering, as it increases the number of shares outstanding, potentially reducing earnings per share. It's also essential to scrutinize the use of proceeds statement in the offering's prospectus. If the funds are being directed towards high-return projects or debt reduction, it could be accretive to long-term shareholder value. Conversely, if the capital is intended for less clear purposes, it may warrant further investigation into the company's strategic direction.

Market Research Analyst

The roadway intelligence technology sector is highly competitive and rapidly evolving. Rekor's public offering could signify an aggressive move to stay ahead in innovation and market share. The pricing of the offering is a strategic decision that reflects current market conditions and the company's valuation. A price of $2.50 per share will attract a certain investor profile, balancing the need for capital with the desire to minimize shareholder dilution.

Market response to such offerings can be a litmus test for investor sentiment towards the company's future prospects. It's crucial to monitor the stock's performance post-announcement to gauge the market's reception. A successful offering could enhance Rekor's credibility and financial stability, potentially leading to partnerships or customer acquisitions. However, a lukewarm or negative market reaction could signal concerns about the company's growth trajectory or the sector's outlook.

Economist

Public offerings are not only corporate events but also reflect broader economic conditions. The offering's timing may coincide with favorable interest rates, investor appetite for tech stocks, or sector-specific trends. An economist would assess the macroeconomic environment, including capital market health, to understand the context of this offering.

Moreover, the price point of the offering can be indicative of broader market valuations for tech companies, especially those in niche sectors like roadway intelligence. A successfully closed offering would suggest investor confidence not just in Rekor but also in the sector's growth potential, despite any prevailing economic headwinds. It's important to consider how economic cycles could impact the deployment of the raised capital and the return on investment for both the company and its shareholders.

COLUMBIA, MD / ACCESSWIRE / February 7, 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 pricing of its 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. Closing of the offering is expected to occur on or about February 9, 2024, subject to customary closing conditions. In addition, Rekor has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of Common Stock at the public offering price less the underwriting discounts and commissions.

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

The securities described above are being 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 preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering was filed with the SEC on February 6, 2024. The final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and may be obtained, when available, 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, including statements regarding the follow-on public offering and the terms of such offering 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, including, without limitation, risks and uncertainties related to market conditions, the ability to complete the offering, and the satisfaction of the closing conditions related to the follow-on public offering. 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

What is the pricing of Rekor Systems, Inc.'s underwritten public offering?

Rekor Systems, Inc. has priced its underwritten public offering at $2.50 per share for 10,000,000 shares of its common stock.

How many shares are included in Rekor Systems, Inc.'s underwritten public offering?

Rekor Systems, Inc.'s underwritten public offering includes 10,000,000 shares of its common stock.

When is the expected closing date for Rekor Systems, Inc.'s public offering?

The closing of Rekor Systems, Inc.'s public offering is expected to occur soon.