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Rekor Systems sets public offering at $2.50 per share

Published 02/07/2024, 09:01 AM
© Reuters.

COLUMBIA, MD - Rekor Systems, Inc. (NASDAQ:REKR), known for its advanced roadway intelligence technology, has announced the pricing of its public offering of 10 million shares at $2.50 each. The closing of the offering is anticipated on or about February 9, 2024, pending the usual closing conditions. The company has also provided underwriters a 30-day option to buy up to an additional 1.5 million shares at the public offering price, minus underwriting discounts and commissions.

William Blair is serving as the sole book-running manager for the offering, with Northland Capital Markets acting as the lead manager. The offering is made through an effective shelf registration statement on Form S-3 filed with the U.S. Securities and Exchange Commission (SEC) on September 10, 2021, and declared effective on September 23, 2021.

Rekor Systems specializes in AI-driven computer vision and machine learning to create comprehensive roadway intelligence systems. Their Rekor One® Roadway Intelligence Engine is central to their technology, which processes trillions of data points into actionable insights. These insights aim to assist governments and businesses in obtaining a holistic view of roadways, promoting safety, sustainability, and efficiency.

This news article is based on a press release statement.

InvestingPro Insights

Rekor Systems, Inc. (NASDAQ:REKR) has recently made headlines with its public offering, but what does the financial data say about the company's performance and market position? According to InvestingPro data, Rekor has a market capitalization of $217.94 million USD, reflecting the market's current valuation of the company. Despite a significant revenue growth of 117.82% over the last twelve months as of Q3 2023, the company's P/E ratio stands at -5.08, indicating that investors are not expecting near-term earnings.

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InvestingPro Tips point to a mix of caution and potential for investors. Analysts predict sales growth in the current year, which could be a positive sign for the company's future. However, they also note that Rekor is quickly burning through cash and has not been profitable over the last twelve months. Additionally, the stock price is known to be quite volatile, which could mean higher risk for investors.

For those considering adding Rekor Systems to their portfolio, it may be helpful to know that the company is trading at a high revenue valuation multiple and does not pay a dividend to shareholders. On a more positive note, Rekor has shown a high return over the last year, with a 70.45% price total return, which could be of interest to growth-focused investors.

For a deeper dive into Rekor Systems' financials and to access additional InvestingPro Tips, visit https://www.investing.com/pro/REKR. There are 9 additional tips listed in InvestingPro that could provide further insights into the company's financial health and future prospects. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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