Trading update & equity funding facility proposal
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) NO. 596/2014. It forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this information is considered to be in the public domain.
Insig AI plc
("Insig AI" or the "Company")
Trading update and equity funding facility proposal
Trading update
Group revenue (unaudited) for its financial year ended 31 March 2024 ("FY-24") is expected to be approximately £1.3 million comprising approximately £0.4 million from the Insig AI business and approximately £0.9 million from the legacy Sport in Schools business which was sold in November 2023.
Frustratingly, this revenue from the Insig AI business is considerably lower than our previously communicated target of not less than £1.4 million, and also does not recognise the progress on certain material contracts and relationships, which the Board remain optimistic will be secured in short order. In particular, two licence contracts, with a combined sales value of £1.0 million, did not close prior to the year end. Whilst there can be no guarantee that these contracts will be secured, they are each at a very advanced stage.
Trials with two of the "Big 4" Accounting Practices
The Company's repository of 220,000 corporate reports, including AI machine learning, search engine and CHAT GPT capabilities is currently being trialled by two of the "Big 4" Accounting Practices. To date, feedback from both practices has been positive, and we are hopeful one of these could transition to a formal collaboration or similar, over the coming months.
Equity funding facility proposal
The delayed commercialisation of certain key pipeline opportunities, has resulted in working capital of the Group becoming constrained. Accordingly, the board is considering a £250,000 equity funding facility proposal from Richard Bernstein, Executive Chairman of Insig AI. The proposal is to subscribe for up to 1,250,000 new ordinary shares at 20p a share. This represents a premium of 17.6% to the closing share price of 17 pence on 28 March 2024. Funds would be used for general working capital purposes, as well as for investment into sales and marketing. Should the parties enter into this equity facility, this would be deemed to be an AIM Rule 13 'Related Party Transaction'.
Richard Bernstein, Insig AI Chairman commented: "We have several important proposals with strong prospects of converting into sales, with our machine learning corporate reporting database attracting significant interest from major consultancies, including two of the "Big 4" Accounting Practices. During this period of focus on converting these prospects into revenues, I am happy to provide equity funding at a significant premium to the current share price, to provide the team further time to realise these opportunities."
For further information, please visit www.insg.ai or contact:
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Insig AI plc Richard Bernstein Colm McVeigh, CEO |
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Zeus (Nominated Adviser & Broker) David Foreman / James Hornigold |
+44 (0) 203 829 5000
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