September 17, 2020
Rekor Systems Completes Major Debt Retirement
Company Now Substantially Debt Free
Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor") (“the Company”), a Maryland-based company providing real-time roadway intelligence through AI-driven decisions, announced today that the company is now substantially debt free following the retirement of approximately $4.9 million in debt. The debt retirement eliminates all remaining short and long-term liability for Notes on the Company’s balance sheet, including accreted interest and all fees payable upon retirement of the Notes. In addition, Matt Hill, Rekor’s Chief Science Officer, exercised 625,000 warrants stemming from the purchase of OpenALPR in March 2019.
“Becoming essentially debt free is a significant milestone for Rekor. It immediately transforms the balance sheet and increases available cashflow. This will enable further growth and allow us to increase our market footprint,” said Eyal Hen, Chief Financial Officer, Rekor. “The transaction has resulted in a dramatic reduction in interest expense and better positions the Company to seize future opportunities.”
“The acquisition of OpenALPR by Rekor has been game changing for Rekor and our customers,” said Matt Hill, Chief Science Officer of Rekor and former founder and Chief Technology Officer of OpenALPR. “This debt retirement validates the future we envisioned last March. I’m more confident than ever in the continuing ability of our AI-driven solutions to deliver innovative, real-time roadway intelligence to customers for a wide variety of uses.”
This announcement follows several months of major news for the Company, including a partnership with Mastercard earlier this month to enable the touchless retail economy, a partnership with Mesa Technologies for School Bus Safety Arm solutions, and the release of the Rekor Go mobile app for commercial users, which puts vehicle recognition on any smartphone.