Rekor Systems Divests Final Non-Core Asset Subsidiary
June 30 2020 - 7:53AM
Rekor Systems, Inc. (NASDAQ:REKR) ("Rekor") (the “Company”), a
Maryland-based company providing real-time roadway intelligence
through artificial intelligence (“AI”) driven decisions, announced
today that it has divested its TeamGlobal subsidiary, as a
final step in its announced change in strategic direction. Last
year the Company announced that it would take steps to divest
itself of the assets in its professional services segment as it
moves ahead with its business strategy to focus on providing its
vehicle recognition solutions for the public safety, smart cities
and customer service markets. This marks the end of a year-long
strategy to sell lower margin assets and focus on Rekor’s core
technology segment.
Rekor has sold TeamGlobal to current members of
the TeamGlobal management team for approximately $4M in cash and
secured notes. TeamGlobal is a premier national staffing firm that
provides skilled technical professionals and maintenance and
modification specialists to the aerospace and aviation maintenance
industries.
The Company’s Board of Directors announced last
year that it was planning to sell subsidiaries that are no longer
core to the strategic direction of the Company. On April 6, 2020,
the Company announced the completion of the sale of its former
subsidiary, AOC Key Solutions. The sale of TeamGlobal removes the
last remaining asset from the Company’s professional services
segment.
Since announcing the change in its strategic
direction, the Company has concentrated on its technology segment,
working to increase sales and further develop its line of AI-driven
products and services. Rekor’s technology segment currently sells
products and provides services used in more than 70 countries by
customers that include some of the world’s largest companies and
governmental organizations. These products and services address
complex issues in public safety, customer experience and smart
cities using proprietary systems designed using AI techniques such
as machine learning and deep learning data analysis.
Rekor’s current suite of solutions is based on
its industry-leading vehicle recognition software. In addition, the
Company is developing further product and service expansions for
the public safety, transportation, customer service and residential
markets worldwide.
“This transaction marks the completion of a major milestone in
our transition to a pure technology centric company. Our Board
concluded last year that a rational monetization process for our
professional services segment was likely to unlock value more
quickly and with greater certainty for the benefit of the Company’s
shareholders,” said Robert A. Berman, Rekor’s President and CEO.
“Given our current strategic direction, the Board determined that
divestiture of our last non-core asset at this price was a logical
step in maximizing shareholder value and fully focusing on our plan
to expand growth in our core markets.”
Rekor recently announced a new contract with the Department of
Defense for additional licenses for its vehicle recognition
software to use with DOD’s existing cameras. It also announced a
joint venture with Cygnet Infotech to automate parking enforcement.
Rekor’s stock is followed by B. Riley and was recently added to the
Russell Microcap Index®.
To learn more about Rekor, please visit
www.rekor.ai.
About Rekor Systems, Inc.
Rekor (Nasdaq: REKR) is a Maryland-based company
providing real-time roadway intelligence through AI-driven
decisions. Rekor bridges commercial and government sectors with
actionable, real-time vehicle recognition data to enable faster,
better informed decisions with greater outcomes. Rekor is
transforming industries like Public Safety, Customer Experience,
and Smart Cities in more than 70 countries across the globe with
smarter, quicker, cost-competitive vehicle recognition solutions
for security, revenue discovery and recovery, public safety,
electronic toll collection, brand loyalty, parking operations,
logistics, and traffic management. We use the power of artificial
intelligence to analyze video streams and transform them into
AI-driven decisions. Our machine learning software can turn most IP
cameras into highly accurate and affordable vehicle recognition
devices used to help protect lives, increase brand loyalty, and
enhance operations and logistics, without the need to install
expensive new infrastructure. We make what was once considered
impossible, possible. To learn more please visit our website:
http://www.rekor.ai
Forward-Looking StatementsThis
press release includes statements concerning Rekor Systems, Inc.
and its future expectations, plans and prospects that constitute
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements
regarding the impact of Rekor's core suite of AI-powered technology
and the size of the market for global ALPR systems. Such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
For this purpose, any statements that are not statements of
historical fact may be deemed to be forward-looking statements. In
some cases, you can identify forward-looking statements by terms
such as "may," "should," "expects," "plans," "anticipates,"
"could," "intends," "target," "projects," "contemplates,"
"believes," "estimates," "predicts," "potential," or "continue," by
the negative of these terms or by other similar expressions. You
are cautioned that such statements are subject to many risks and
uncertainties that could cause future circumstances, events, or
results to differ materially from those projected in the
forward-looking statements, including the risks that actual
circumstances, events or results may differ materially from those
projected in the forward-looking statements, particularly as a
result of various risks and other factors identified in our filings
with the Securities and Exchange Commission. All forward-looking
statements contained in this press release speak only as of the
date on which they were made and are based on management's
assumptions and estimates as of such date. We do not undertake any
obligation to publicly update any forward-looking statements,
whether as a result of the receipt of new information, the
occurrence of future events, or otherwise.
Media Contacts:Emily
BurdeshawREQ For Rekor Systemsrekor@req.co
Investor Contacts: Charles
Degliomini Rekor Systems, Inc.ir@rekor.ai
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