Shares of Duos Technologies Group Inc (NASDAQ:DUOT) fell sharply on Friday after the company priced an underwritten public offering of common stock that is expected to yield roughly $65 million in gross proceeds before fees. The decline in the share price reflected investor reaction to the equity raise.
Offer structure and timeline
Duos set the offering size at 8,666,666 shares of common stock. Underwriting arrangements grant the underwriters a 30-day option to purchase up to an additional 1,299,999 shares to cover possible over-allotments. The company said the offering is expected to close on or about March 2, 2026, subject to customary closing conditions. Titan Partners, a division of American Capital Partners, is serving as the sole bookrunner for the transaction.
Planned use of proceeds
Duos indicated that net proceeds from the offering will support the expansion and commercialization of its Edge Data Center business and will be used for working capital and general corporate purposes. The company did not provide a more detailed allocation of funds beyond those purposes.
Commercial developments disclosed alongside the offering
In conjunction with announcing the offering, Duos said it has entered a non-binding letter of intent with Hydra Host to deploy a high-density NVIDIA GPU cluster for a global technology customer. The arrangement is described as a GPU-as-a-Service partnership that the company said is expected to produce approximately $176 million in revenue over 36 months, with projected annual EBITDA exceeding $40 million and gross margins above 80%. The collaboration is also forecast to generate roughly $25 million in incremental colocation revenue over the same 36-month period.
Separately, Duos reported a non-binding letter of intent for a ground lease in Iowa that would provide access to up to 10MW of utility power. The company did not disclose additional contractual terms related to that lease in the announcement.
Management transition
Duos announced a leadership change, naming Doug Recker as Chief Executive Officer, effective April 1, 2026. Recker will succeed Chuck Ferry, who will remain on the board. The company said Recker will lead efforts to expand modular Edge Data Centers and GPU hosting capabilities. Craig Nixon, Chairman of the Board, expressed gratitude to Ferry for guiding the company through a strategic shift toward data centers and power infrastructure.
Outlook and conditions
The offering remains subject to customary closing conditions. The company provided financial projections related to the reported GPU hosting partnership on a forward-looking basis in the announcement, and the LOIs cited are non-binding, indicating those arrangements are not yet final.