Remark Holdings Uses Regulation A to Offer $75 Million of Cumulative Redeemable Perpetual Preferred Stock Paying 15% Dividend

Rhea-AI Summary

Remark Holdings (OTCQX:MARK) announces a $75 million offering of Series B 15% Cumulative Redeemable Perpetual Preferred Stock. Each preferred share is priced at $100, with a 15% annual dividend paid quarterly. 30% of sales proceeds will be segregated to secure the first two years of dividend payments. The company plans to use the funds to fuel growth through partnerships with Microsoft, Nvidia, Oracle, and Intel, targeting the conversion of over 100 million legacy cameras to AI-driven systems in the U.S. The offering aims to strengthen the balance sheet without diluting common stock, potentially facilitating future uplisting to NASDAQ or NYSE.

Positive

• 15% annual dividend yield on preferred stock
• 30% of proceeds secured for first two years of dividend payments
• Strategic partnerships with major tech companies (Microsoft, Nvidia, Oracle, Intel)
• No dilution to common stockholders
• Potential uplisting to major exchange

Negative

• High 15% dividend rate indicates significant cost of capital
• Only two years of dividend payments secured
• Currently trading on OTCQX market indicates lower tier exchange status

News Market Reaction – MARK

-9.07%

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-9.07% News Effect

On the day this news was published, MARK declined 9.07%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

As many as 750,000 Preferred Stock Shares Will be Sold at $100.00 Each, with 30% of Sales Proceeds being Segregated to Secure Payment of Two Years of Dividends

LAS VEGAS, NV / ACCESSWIRE / November 18, 2024 / Remark Holdings, Inc. (OTCQX:MARK), a leading provider of artificial intelligence computer vision solutions, today is launching a $75 million offering of its Series B 15% Cumulative Redeemable Perpetual Preferred Stock. The Series B preferred stock pays a dividend of 15% per annum on a quarterly basis, with 30% of the proceeds of each sale of the Series B preferred stock being segregated to secure payment of the first two years of the dividend. The company is utilizing the offering proceeds to fuel growth and restructure its balance sheet without diluting its common stock.

Remark Holdings' CEO Kai-Shing Tao stated, "Our success in implementing our proprietary AI computer vision technology platform for clients in a variety of industries has put us in position to take advantage of the substantial growth opportunity presented by the more than 100 million legacy, non-AI-enabled cameras in the U.S. alone that can be converted to AI-driven cameras. This capital raise allows us to finance our expansion by capitalizing on our sales and marketing partnerships with Microsoft, Nvidia, Oracle, and Intel."

Key Highlights:

• Offering Terms: Each preferred share is priced at $100. The company will segregate 30% of the proceeds of each sale of the Series B preferred stock to secure payment of the first two years of the dividend.

• Use of Proceeds: Funds raised will be used towards fueling and supporting the growth stemming from sales and marketing partnerships with industry giants Microsoft, Nvidia, Oracle, and Intel as well as addressing the company's growing sales backlog, while strengthening the balance sheet.

• Trading Information: The company intends to list the preferred shares on the OTCQX market.

• Increased Shareholder Equity Leads to Future Stock Uplisting: The offering increases Remark's shareholders' equity without diluting common stock and is expected to satisfy the requirements for a future stock uplisting onto a national securities exchange such as NASDAQ or NYSE.

• Future Outlook: Remark Holdings anticipates that its projected growth will enable the company's operations to sustain dividend payments after the first two years.

Investors interested in further details about the offering can access the Form 1-A/A related to the offering through the investor relations page of the company's website.

About Remark Holdings, Inc.

Remark Holdings, Inc. (OTCQX:MARK), a Microsoft Azure Marketplace Co-Selling partner and member of the Oracle Partner Network, is a U.S. company that developed and sells the AI-powered analytics platform that brings valuable insights to the video feeds provided by current cameras and computer vision solutions through its integrated suite of AI tools that help organizations understand their customer behavior and demographics while providing real-time alerts to predetermined inspection and security parameters. Remark's global team of sector-experienced professionals has created award-winning GDPR-compliant and CCPA-compliant video analytics solutions that service the government agencies, hospitality, public safety, retail, and transportation sectors. The company's headquarters are in Las Vegas, Nevada, USA, with operational offices in New York and international offices in London, England.For more information, please visit our home page at www.remarkholdings.com.

Forward-Looking Statements

This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment, and regulations. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in the future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Holdings' Annual Report on Form 10-K and Remark Holdings' other filings with the SEC. Any forward-looking statements reflect Remark Holdings' current views with respect to future events, are based on assumptions, and are subject to risks and uncertainties. Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Holdings' estimates and assumptions only as of the date hereof. Except as required by law, Remark Holdings undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.

Company Contacts

Kai Tao
Chief Strategy Officer
Kai@remarkholdings.com
(702) 321-9550

SOURCE: Remark Holdings, Inc.

View the original press release on accesswire.com

FAQ

What is the dividend rate for Remark Holdings' (MARK) new preferred stock offering?

Remark Holdings' Series B preferred stock offers a 15% annual dividend rate, paid quarterly.

How much is Remark Holdings (MARK) raising in their preferred stock offering?

Remark Holdings is raising $75 million through the offering of 750,000 preferred shares at $100 per share.

How are Remark Holdings' (MARK) preferred stock dividends secured?

30% of the sales proceeds will be segregated to secure dividend payments for the first two years.

What will Remark Holdings (MARK) use the preferred stock offering proceeds for?

The proceeds will fund growth through partnerships with Microsoft, Nvidia, Oracle, and Intel, address sales backlog, and strengthen the balance sheet.