Axon Enterprise, Inc. has entered into separate agreements with certain holders of its 0.50% convertible senior notes due 2027. Under these agreements, Axon will exchange approximately $407.5 million in principal amount of the notes for cash and shares of its common stock, with the final share count determined over an averaging period starting on March 7, 2025. Based on the March 6 closing price of $499.31 per share, Axon expects to issue about 1 million shares.

Following the completion of the exchanges, expected around March 13, 2025, Axon will have approximately $282.5 million in remaining notes outstanding. The company anticipates that counterparties hedging their exposure to the notes may engage in transactions that could influence the stock price.

The issued shares will be exempt from registration under U.S. securities laws, as they will be offered to qualified institutional buyers and accredited investors. Axon has also issued a press release detailing the transaction.