Business
Rekor Systems Announces Sale of $15 Million of Revenue Sharing Notes Due December 15, 2026 Priced at 13.25%
Company to host a special investor conference call on December 14, 2023 to discuss its Revenue Sharing Notes programCOLUMBIA, MD / ACCESSWIRE / December 13,
About this update from Rekor Systems, Inc.
[{"type":"text","content":"Company to host a special investor conference call on December 14, 2023 to discuss its Revenue Sharing Notes programCOLUMBIA, MD / ACCESSWIRE / December 13, 2023 / 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 a registered offering of $15 million in aggregate principal amount of its 13.25% Series A Prime Revenue Sharing Notes due December 15, 2026 (the \"Series A Notes\"). Proceeds are expected to be used for expansion and working capital purposes.\"Our remarkable success in growing revenues under our 'pay for data' recurring revenue model depends on both the benefits of our advanced technology and the ability to finance the installations necessary for implementation,\" said Robert A. Berman, Rekor Chairman and CEO. \"With the structure of this note offering, we are pleased to have developed a financing mechanism that unlocks the unique value of the strong revenue stream that lies behind our contract obligations. As we continue to expand our operations, we expect the use of this mechanism going forward to significantly reduce or eliminate the need to fund our contract growth through the use of equity-based financings.\"The Series A Notes are the first to be issued pursuant to and secured under an Indenture of Trust (the \"Indenture\"). The Indenture pledges revenues from a pool of contracts with the Company's prime customers. To be considered prime customers, the customer's unsecured obligations must maintain an investment grade rating by at least two nationally recognized rating agencies.Additional series of notes may be issued in the future and secured on a parity basis under the Indenture with revenues from the pool, which may contain additions and substitutions. The aggregate principal amount of notes permitted to be issued under the Indenture may not exceed 50% of the three-year value of estimated revenues from the pool.A report on Form 8-K concerning the offering of the Series A Notes will be filed with the U.S. Securities and Exchange Commission (the \"SEC\"). The Series A Notes were offered pursuant to an effective shelf registration statement on Form S-3 (File No. 333-259447), including the base prospectus, filed with the SEC under the Securities Act of 1933, as ...