Genasys Announces $15 Million Two-Year Term Loan Agreement
15 May 2024 - 6:14AM
Genasys Inc. (NASDAQ: GNSS), the global leader in protective
communications, today announced the close of a $15 million two-year
senior secured term loan with an institutional investor experienced
in government contracts and specifically conducting business in
Puerto Rico, as well as the Company's customer there, PREPA.
Proceeds from the financing will be used for working capital and
other general corporate purposes, enabling continuing growth in its
Software business as well as facilitating delivery against the
previously announced project award in Puerto Rico.
The loan is secured by substantially all of the Company’s assets
and was issued with a 2% original issue discount (OID). Interest on
the principal is payable quarterly in cash at a rate of the
three-month Secured Overnight Financing Rate (SOFR) plus five
percent (5%). The Company may elect to pay interest quarterly 50%
in cash and 50% in common shares at a quarterly interest rate of
the three-month SOFR plus six percent (6%). The loan is
non-amortizing and is due May 13, 2026. The loan agreement also
allows Genasys to prepay principal at 101% of par at any time
during the first year, and at par thereafter prior to due date. In
addition, the Company issued approximately 3.1 million five-year
warrants to the Investor, each exchangeable for one share of common
stock at an exercise price of $2.53, subject to adjustment.
ROTH Capital Partners acted as Placement Agent and legal
representation was provided by Dentons Durham Jones Pinegar
P.C.
About Genasys Inc.
Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective
Communications Solutions and Systems, designed around one premise:
ensuring organizations and public safety agencies are “Ready when
it matters™.” The company provides the Genasys Protect platform,
the most comprehensive portfolio of preparedness, response, and
analytics software and systems, as well as Genasys Long Range
Acoustic Devices (LRAD®) that deliver directed, audible voice
messages with intelligible vocal clarity from close range to 5,500
meters. Genasys serves state and local governmental agencies, and
education (SLED); enterprise organizations in critical sectors such
as oil and gas, utilities, manufacturing, and automotive; and
federal governments and the military. Genasys Protective
Communications Solutions have diverse applications, including
emergency warning and mass notification for public safety, critical
event management for enterprise companies, de-escalation for
defense and law enforcement, and automated detection of real-time
threats like active shooters and severe weather. Protecting people
and saving lives for over 40 years, Genasys covers more than 70
Million people in over 100 countries worldwide, including more than
500 U.S. cities, counties and states. For more information,
visit genasys.com.
Forward-Looking Statements
Except for historical information contained herein, the matters
discussed are forward-looking statements within the meaning of the
“safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. You should not place undue reliance on these
statements. We base these statements on particular assumptions that
we have made in light of our industry experience, the stage of
product and market development as well as our perception of
historical trends, current market conditions, current economic
data, expected future developments and other factors that we
believe are appropriate under the circumstances. Forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those suggested in any
forward-looking statement. The risks and uncertainties in these
forward-looking statements include without limitation the business
impact of geopolitical conflicts, epidemics or pandemics, and other
causes that may affect our supply chain, and other risks and
uncertainties, many of which involve factors or circumstances that
are beyond the Company’s control. Risks and uncertainties are
identified and discussed in our filings with the Securities and
Exchange Commission. These forward-looking statements are based on
information and management’s expectations as of the date hereof.
Future results may differ materially from our current expectations.
For more information regarding other potential risks and
uncertainties, see the “Risk Factors” section of the Company’s Form
10-K for the fiscal year ended September 30, 2023. Genasys Inc.
disclaims any intent or obligation to publicly update or revise
forward-looking statements, except as otherwise specifically
stated.
Investor Relations Contact
Brian Alger, CFA
SVP, IR and Corporate Development
ir@genasys.com
(858) 676-0582
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