Business
Creative Realities Successfully Closes Public Offering
Migrating to optimal capital structure in support of growthProceeds targeted at reduction in debtTargets Net Debt Leverage Ratio below 2.0x LOUISVILLE, Ky.,
About this update from Creative Realities, Inc.
[{"type":"text","content":"Migrating to optimal capital structure in support of growthProceeds targeted at reduction in debtTargets Net Debt Leverage Ratio below 2.0x LOUISVILLE, Ky., Aug. 23, 2023 (GLOBE NEWSWIRE) -- Creative Realities, Inc. (“Creative Realities,” “CRI,” or the “Company”) (NASDAQ: CREX, CREXW), a leading provider of digital signage and media solutions, successfully closed its previously announced public common stock offering on August 21, 2023, and is pleased to provide information about the offering. On August 17, 2023, the Company announced a public offering of $6 million in common stock, with no warrant coverage, to institutional and retail investors with use of the net proceeds for general corporate purposes, which may include repayment of principal on the Company’s indebtedness, capital expenditures and funding working capital. Creative Realities CEO Rick Mills commented “The Company experienced unprecedented revenue growth in 2022 and is poised for further revenue and profitability enhancements moving forward.” Mr. Mills continued, “The completion of this offering will significantly reduce our leverage ratio – the net offering proceeds are earmarked to repay principal on the Company’s amortizing notes – and supports continued conversion of the tremendous growth in opportunities we are experiencing in the marketplace through enhanced working capital. By addressing our capital structure, we have fundamentally reduced the risk profile of the Company and provided sufficient runway to realize value creation for investors as we expect to demonstrate performance against our plan.” Mr. Mills stated, “Through the public offering, we have brought on valuable new institutional investors vested in supporting our value creation plan and who we believe are positioned to continue to support the Company as we scale.” Mr. Mills concluded, “Let me be clear, the value that we have created is unimpacted. On the contrary, this transaction provides fuel to aggressively advance available opportunities for the benefit of all our shareholders, with significant focus on continuing the growth in our $15 million-plus SaaS-based annual recurring revenue base.” The Company repaid approximately $3.2 million in short-term, amortizing debt principal in 2023 through August 21, 2023. The Company anticipates using the net proceeds of the offering to service the Compa...