AXON ANNOUNCES PRIVATE EXCHANGES OF CONVERTIBLE SENIOR NOTES

Core Viewpoint - Axon Enterprise, Inc. has entered into privately negotiated exchange agreements to exchange approximately $407.5 million of its 0.50% convertible senior notes due 2027 for cash and common stock, with an expected issuance of about 1.0 million shares based on a projected stock price of $499.31 during the averaging period [1][2]. Group 1: Exchange Agreements - Axon will exchange approximately $407.5 million aggregate principal amount of its convertible senior notes for cash and shares of common stock [1]. - The exchange consideration will include the principal amount and accrued interest on the notes being exchanged [1]. - Following the exchanges, Axon will have approximately $282.5 million aggregate principal amount of notes outstanding [1]. Group 2: Market Impact - Hedged holders of the notes may unwind their hedge positions by purchasing Axon's common stock, which could significantly impact the market price of the stock [2]. - The amount of common stock purchased by hedged holders may be substantial compared to Axon's historic average daily trading volume [2]. - Axon cannot predict the magnitude of market activity or its overall effect on the stock price [2]. Group 3: Company Overview - Axon is a technology leader in global public safety, aiming to reduce gun-related deaths between police and the public by 50% before 2033 [4]. - The company integrates a suite of hardware devices and cloud software solutions for modern policing, including TASER devices, body cameras, and digital evidence management solutions [4]. - Axon's customer base includes various law enforcement agencies, fire services, corrections, emergency medical services, and enterprises [4].