Duos Technologies' stock price plummets due to a $65 million stock issuance

2026-02-27 18:22:14

Investing.com – Duos Technologies Group Inc (NASDAQ:DUOT) stock fell 14.8% on Friday after the company announced the pricing of an underwritten public offering of 8,666,666 common shares, which is expected to generate approximately $65 million in gross proceeds before expenses.

The company granted the underwriters a 30-day option to purchase up to an additional 1,299,999 shares to cover over-allotments. The offering is expected to close on or around March 2, 2026, subject to customary closing conditions. Titan Partners, a division of American Capital Partners, served as the sole bookrunner.

Duos stated that the net proceeds will be used to expand and commercialize its edge data center business, as well as for working capital and general corporate purposes.

Following the offering announcement, the company disclosed that it had signed a non-binding letter of intent with Hydra Host to deploy high-density NVIDIA GPU clusters for a global technology client. The project supports a GPU-as-a-Service partnership and is expected to generate approximately $176 million in revenue over 36 months, with an annual EBITDA exceeding $40 million and a gross margin over 80%.

The collaboration is also expected to generate approximately $25 million in incremental hosting revenue during the same period. Duos has also signed a separate non-binding letter of intent for ground leasing in Iowa, which can provide up to 10 megawatts of utility power.

The company also announced that Doug Recker will assume the role of CEO starting April 1, 2026, succeeding Chuck Ferry, who will remain on the board of directors. Recker will lead the company’s expansion of modular edge data centers and GPU hosting capabilities.

Chairman Craig Nixon thanked Ferry for transforming Duos from its original business model into a focus on data center and power infrastructure.

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