Rekor Systems Launches Proposed Follow-On Public Offering of Common Stock

Rhea-AI Summary

Rekor Systems, Inc. (Nasdaq:REKR) announced a proposed follow-on public offering of shares of its common stock, with the intention to grant the underwriters a 30-day option to purchase additional shares. The offering is subject to market conditions, and the securities are being offered pursuant to an effective shelf registration statement on Form S-3 filed with the SEC. William Blair is acting as the sole book-running manager for the proposed offering, and Northland Capital Markets is acting as the lead manager.

Financial Analyst

Rekor Systems, Inc.'s announcement of a proposed follow-on public offering represents a significant capital raising activity that could have material implications for the company's financial structure and market perception. By issuing additional shares of common stock, Rekor is seeking to raise new capital, which could be utilized for a variety of purposes, such as funding research and development, expanding operations, or reducing debt.

It's important to note that follow-on offerings can dilute existing shareholders' equity, potentially leading to a decrease in earnings per share (EPS). However, if the capital is deployed effectively, it could lead to growth and value creation that outweighs the dilution effect. The market's response to such an offering will largely depend on investor confidence in Rekor's growth strategy and the perceived value of the investment.

The grant of a 30-day option for underwriters to purchase an additional 15% of shares is a common practice known as an 'over-allotment option' or 'greenshoe option,' which can stabilize the stock price after the offering. The terms of the offering, including the price and number of shares, will be critical in assessing its impact on the company's valuation.

Market Research Analyst

In the context of the roadway intelligence technology industry, Rekor's decision to conduct a follow-on public offering could be indicative of an aggressive growth strategy or a need to finance capital-intensive projects. The success of such an offering is contingent upon market conditions and investor appetite for technology stocks, particularly those involved in infrastructure-related technology.

Furthermore, the role of William Blair as the sole book-running manager and Northland Capital Markets as the lead manager suggests a level of confidence in the offering's execution. It's crucial to analyze investor sentiment towards Rekor, as well as broader market trends, to gauge the potential success of the offering and its subsequent impact on Rekor's stock performance.

Understanding the competitive landscape and Rekor's market positioning will also provide insight into the potential return on investment from the capital raised. This includes evaluating the company's historical financial performance, current revenue streams and projected growth in relation to the industry's overall trajectory.

Legal Expert

The legal framework governing follow-on public offerings is intricate, involving compliance with SEC regulations and securities laws. Rekor's use of an effective shelf registration statement on Form S-3 streamlines the process, allowing the company to offer and sell securities over time without the need for multiple registrations.

The preliminary prospectus supplement and accompanying prospectus will be vital documents for investors, detailing the specific terms of the offering and the associated risks. The legal stipulation that the offering cannot be completed in jurisdictions where it would be unlawful prior to registration or qualification underscores the importance of adhering to diverse state and federal securities laws.

It's also noteworthy that the press release disclaims the communication as an offer to sell or a solicitation of an offer to buy, which is a standard legal precaution to prevent the company from prematurely offering securities before the registration statement is declared effective by the SEC.

COLUMBIA, MD / ACCESSWIRE / February 6, 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 launch of a proposed follow-on public offering of shares of its common stock (the "Common Stock"). In addition, Rekor intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of Common Stock offered in the public offering at the public offering price less the underwriting discounts and commissions. All of the shares are being offered by Rekor. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

William Blair is acting as sole book-running manager for the proposed 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 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 proposed follow-on public offering and the proposed 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 Rekor Systems, Inc. ticker symbol?

The ticker symbol for Rekor Systems, Inc. is REKR.

What did Rekor Systems, Inc. announce?

Rekor Systems, Inc. announced a proposed follow-on public offering of shares of its common stock.

Who is acting as the sole book-running manager for the proposed offering?

William Blair is acting as the sole book-running manager for the proposed offering.

What is the 30-day option being granted by Rekor Systems, Inc.?

Rekor Systems, Inc. intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of Common Stock offered in the public offering at the public offering price less the underwriting discounts and commissions.

When was the shelf registration statement filed with the SEC?

The shelf registration statement on Form S-3 was filed with the U.S. Securities and Exchange Commission (SEC) on September 10, 2021, and declared effective on September 23, 2021.

Where can the preliminary prospectus supplement be obtained?

The preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering will be filed with the SEC and may be obtained by contacting William Blair & Company, L.L.C., or by accessing the SEC's website.

Does this press release constitute an offer to sell or the solicitation of an offer to buy?

No, 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.