Rekor Systems enters term sheet for $15 million of secured notes

Chicago, Dec. 21 – Rekor Systems, Inc. executed a term sheet for $15 million of notes, according to a press release.

The company’s chairman and chief executive officer arranged and is participating in the financing.

The 30-month notes will be a senior secured debt obligation of the company and its wholly owned subsidiaries.

Interest will be at 12%, payable quarterly.

They may be subordinated to a tier 1 bank facility not to exceed $15 million.

Noteholders will also receive 100% warrant coverage to purchase Rekor common stock at $2.00 per share with a five-year exercise period.

Closing is expected in early January.

Proceeds will provide necessary funding for the company’s execution plan across its public safety, urban mobility, and transportation management business.

Final details will be provided on an 8-K filing with the Securities and Exchange Commission.

Rekor Systems provides real-time roadway intelligence. Headquarters are in Columbia, Md.

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