Creative Realities announces proposed public offering

Creative Realities, Inc. (NASDAQ: CREX, CREXW) announced on August 17, 2023, the pricing of a $6 million public offering of 3,000,000 shares of common stock at $2.00 per share, with the closing expected on or about August 21, 2023, subject to customary conditions. The offering, conducted under a previously filed shelf registration statement on Form S-3, was managed by A.G.P./Alliance Global Partners as the sole placement agent.

The company intends to use the net proceeds for general corporate purposes, including the repayment of principal on its indebtedness, capital expenditures, and working capital. As of August 21, 2023, Creative Realities had already repaid approximately $3.2 million in short-term, amortizing debt principal, with further reduce its debt balance to approximately $3.8 million by March 2024. The company aims to achieve a net debt leverage ratio below 2.0x by the end of 2024.

The CEO, Rick Mills, emphasized that the offering supports the company’s growth strategy and reduces financial risk by strengthening its capital structure. The company also highlighted its recent acquisition of Reflect Systems, Inc., which has expanded its SaaS-based offerings and digital signage capabilities.