Rekor Systems raises $11M via warrant exercise, issues new warrants for 2.85M shares

Rekor Systems, Inc.

Exercising holder paid $10.996M to exercise 6,872,853 existing warrants at $1.60/share; Rekor issued 6,872,853 common shares.
In consideration, Rekor issued new unregistered warrants to purchase 2,850,000 shares at $3.25, expiring Jan 25, 2029.
Company to file resale registration statement for new warrant shares within 45 days; new warrants not registered initially.
Holder agrees to no short sales for 6 months; volume cap of 5% of prior day's volume or 15% of 5-day volume.
Company restricted from variable rate transactions for 6 months and securities issuances for 90 days (with exceptions).

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

Rekor Systems, Inc. entered into Inducement Offer to Exercise Common Stock Purchase Warrants Letter Agreement with the Exercising Holder valued at Exercise of existing warrants for 6,872,853 shares at $1.60 per share, gross proceeds of $10,996,564 (effective 2023-07-25).

Action: entry
Agreement: equity purchase
Counterparty: the Exercising Holder
Value: Exercise of existing warrants for 6,872,853 shares at $1.60 per share, gross proceeds of $10,996,564
Effective: 2023-07-25

Exact text from the filing

On July 25, 2023, the Company entered into an Inducement Offer to Exercise Common Stock Purchase Warrants letter agreement (the “Letter Agreement”) with the holder (the “Exercising Holder”) of the Existing Warrants to purchase for cash an aggregate of 6,872,853 shares of Common Stock, representing all of the shares of Common Stock underlying the Existing Warrants.

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Rekor Systems, Inc. filing history →

Source: SEC EDGAR

accession 0001193125-23-194781

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