SAN DIEGO, May  14, 2024  (GLOBE NEWSWIRE) -- 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.