Rekor Announces Closing of Senior Secured Notes Financing

Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the "Company"), a global AI technology company with a mission to provide insights that build safer, smarter, and greener cities through intelligent infrastructure, today announced the initial closing of its previously announced private placement of Senior Secured Notes (the “Notes") in the aggregate principal amount of up to $15 million. This financing was led by the Company's Chairman and CEO, Robert A. Berman, with participation from other new and existing investors. An aggregate of $12.5 million, before expenses, was funded at the initial closing on January 18, 2023. Upon request made by the Company within six months of the initial closing, up to an additional $2.5 million may be funded at the option of Investors. Proceeds from the private placement will provide necessary funding for the execution of the Company's strategic plan across its public safety, urban mobility, and transportation management businesses.

The Company also previously disclosed it had retained Three Twenty-One Capital as a financial advisor to assist in ongoing discussions with several large multinational companies, including current business partners, regarding potential strategic investments in the Company. These conversations remain ongoing, and there can be no assurance that any transaction will result from these discussions.

"We are extremely pleased by the response from accredited investors to this private placement which recognizes the increasing demand for digital infrastructure technology and the importance of our technology's role in capitalizing on the historic infrastructure investments that will transform our communities in the United States and beyond," said Eyal Hen, CFO, Rekor.

The Notes have a maturity date of 30 months from the date of issuance and are a senior secured debt obligation of Rekor and its wholly-owned subsidiaries. The Notes may be subordinated on certain terms and conditions to a tier-one bank facility not to exceed $15 million, and bear interest payable quarterly at 12% per annum. Noteholders also received 100% warrant coverage to purchase Rekor common stock at $2.00 per share, with a five-year exercise period.

Please see the Company's Form 8-K for additional details regarding the private placement.

About Rekor Systems, Inc.

Rekor Systems, Inc. (NASDAQ: REKR) is a trusted global authority on intelligent infrastructure providing innovative solutions that drive the world to be safer, smarter, and greener. As a provider of comprehensive, continuous, and real-time roadway intelligence, Rekor leverages AI, machine learning, and holistic data to support the intelligent infrastructure that is essential for smart mobility. With its disruptive technology, the Company delivers integrated solutions, actionable insights, and predictions that increase roadway safety.

Forward-Looking Statements

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