Rekor Systems ends at-the-market sales agreement after raising $23.3 million

Rekor Systems, Inc. (NASDAQ:REKR), currently trading at $1.11 with a market capitalization of $129 million, announced Tuesday that it has voluntarily terminated its At Market Issuance Sales Agreement with Northland Securities, Inc. The agreement, originally dated February 10, 2025, allowed the company to sell shares of its common stock through the Nasdaq Stock Market.

According to a statement in the SEC filing, Rekor Systems sold a total of 18,888,832 shares of common stock under the agreement, generating approximately $23.3 million in gross proceeds. The company elected to end the agreement on Tuesday. InvestingPro data shows the company is quickly burning through cash, with a negative free cash flow yield of -26%.

The At Market Issuance Sales Agreement was previously disclosed and enabled Rekor Systems to issue shares directly into the market at prevailing prices. The agreement’s termination does not affect the validity of shares already sold.

Rekor Systems is incorporated in Delaware and is classified under communications equipment. Its principal executive offices are located in Columbia, Maryland.

This article is based on a statement provided in a press release included with a Form 8-K filing submitted to the Securities and Exchange Commission.

In other recent news, Rekor Systems reported its first-quarter 2025 financial results, which fell short of expectations. The company posted an earnings per share of -$0.10, missing the anticipated -$0.09, and reported revenue of $9.2 million, below the forecasted $13.64 million. In a significant development, Rekor Systems secured a multi-year statewide contract with the Texas Department of Transportation (TxDOT) to implement its Rekor Command® platform. This contract includes an eight-figure blanket purchase order, allowing all TxDOT districts to adopt the technology, aiming to enhance traffic operations and safety across Texas. Additionally, Rekor Systems announced a $1.2 million contract with a Sun Belt state transportation agency to install 150 Rekor Discover® systems, enhancing traffic data collection and monitoring. The company’s recent Annual Meeting of Stockholders resulted in the election of nine directors and the ratification of its independent public accountant. These developments highlight Rekor Systems’ ongoing efforts to expand its reach and capabilities in traffic management solutions.

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