COLUMBIA, MD - Rekor Systems, Inc. (NASDAQ:REKR), a company specializing in roadway intelligence technology, announced today its plan to redeem all of its $12.5 million Senior Secured Notes ahead of schedule. The redemption, slated for March 4, 2024, is aimed at strengthening the company's balance sheet and will release a first priority lien on all of Rekor's assets.
The move to retire the debt is partially funded by a recent public offering, with note holders agreeing to accept $1.875 million of the redemption price in the form of 750,000 unregistered common shares, priced at $2.50 each. Robert A. Berman, Chairman and CEO of Rekor, is among the note holders.
Eyal Hen, CFO of Rekor, stated that the early redemption marks a significant achievement for the company, clearing their assets of encumbrances and reducing interest expenses. Hen emphasized that this action will enhance the company's operational freedom and financial flexibility, positioning Rekor favorably for strategic growth and shareholder value enhancement.
Rekor Systems is known for its advanced artificial intelligence-driven computer vision and machine learning technologies, which are integral to its Rekor One® Roadway Intelligence Engine.
The information is based on a press release statement from Rekor Systems, Inc.
InvestingPro Insights
In light of Rekor Systems, Inc.'s (NASDAQ:REKR) recent move to strengthen its financial position by redeeming its Senior Secured Notes, insights from InvestingPro provide a deeper understanding of the company's current market standing. With a market capitalization of $194.13 million and a significant revenue growth of 117.82% in the last twelve months as of Q3 2023, Rekor demonstrates a robust expansion in its top-line figures.
However, this growth comes amidst challenges, highlighted by a negative P/E ratio of -4.53, indicating that the company is not currently profitable. This aligns with one of the InvestingPro Tips which suggests that analysts do not expect Rekor to be profitable this year. Additionally, the stock's performance has been quite volatile, with a 60.84% return over the last year, yet facing a steep decline of 30.93% year-to-date as of the provided date in 2024. This volatility is further evidenced by a sharp 33.14% drop in the stock price over the last month.
Investors looking for more comprehensive analysis and additional InvestingPro Tips can explore the 13 listed for Rekor Systems on InvestingPro. For those interested in a deeper dive, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to a wealth of data and insights to inform investment decisions.
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