Rekor Systems, Inc. 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 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.