REG - Insig AI Plc - Strategic investment, revenue share and TVR

Insig AiAnnouncement

30/05/2024 07:15

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RNS Number : 3613Q  Insig AI Plc  30 May 2024

 

Insig AI plc

("Insig AI" or the "Company")

 

Strategic investment in ImpactScope and revenue share partnership

 

Insig AI, the data science and machine learning business, is pleased to
announce that it has acquired a 5.45% equity interest in ImpactScope OÜ
("ImpactScope"). ImpactScope is an award-winning European impact-focused AI
and blockchain company, registered in Estonia. The consideration is through
the issue of 900,000 ordinary shares of shares of 1 pence each in the Company
("Ordinary Shares") at a price of 13.75p per share (together, the
"Consideration Shares"). The Consideration Shares will be subject to a lock-in
arrangement for a minimum of two years.

 

Revenue share partnership and option

 

ImpactScope has appointed Insig AI as its exclusive agent for global sales to
asset managers and international regulators of ImpactScope's award-winning
Greenwashing Identifier ("GWI"). GWI is an AI and blockchain powered
application capable of identifying inconsistencies and unsubstantiated claims
in statements and numbers across multiple datasets, including annual reports,
ESG reports, earnings call transcripts, social media posts, news articles and
carbon offset purchase transaction records. The partnership provides Insig AI
with 40% of revenues from sales of the GWI.

 

ImpactScope has also granted Insig AI an option to subscribe EUR 800,000 for
further equity securities, as part of a following a future funding round,
which values ImpactScope at EUR 10,000,000 or more on a pre-money basis.

 

About ImpactScope

 

ImpactScope has designed the world's first carbon emissions calculation tools
for digital asset exchanges and crypto mining companies. Clients and partners
include YouHodler, Climate Focus, US BTC Corp (Hut8), NextEarth and
Crypto2Cash. In the last quarter of 2023, ImpactScope won several accolades
for its work on GWI, including the Global Financial Innovation Network Eureka
Prize and the Green Cross Climate Positive Award at COP28. GWI has been tested
by regulators in multiple jurisdictions and many of its features were designed
in collaboration with the World Bank and the UK Financial Conduct Authority.

 

Consideration, admission and total voting rights

 

The Consideration Shares will be satisfied partly from the issue of 505,888
existing Ordinary Shares held in treasury and partly from the issue of 394,112
new Ordinary Shares (the "New Ordinary Shares").

 

Application will be made to the London Stock Exchange for admission of the New
Ordinary Shares to trading on AIM ("Admission"). It is expected that Admission
will become effective and dealings in the New Ordinary Shares will commence on
or around 4 June 2024.

 

The New Ordinary Shares will be issued fully paid and will rank pari
passu in all respects with the Company's existing Ordinary Shares.

 

Following Admission, the total number of Ordinary Shares in the capital of the
Company in issue will be 110,745,137. Following the issue of the Consideration
Shares the Company does not hold any shares in treasury, as such, the total
number of voting rights in the Company following Admission will be
110,745,137. This figure may be used by shareholders as the denominator for
the calculations by which they will determine if they are required to notify
their interest in, or a change to their interest in, the Company's share
capital pursuant to (i) the Company's Articles, (ii) the Financial Conduct
Authority's Disclosure Guidance and Transparency Rules and/or (iii) the AIM
Rules for Companies issued by the London Stock Exchange plc as amended from
time to time.

 

 

Richard Bernstein, Chief Executive of Insig AI commented: "We're delighted to
have reached agreement with ImpactScope. Reporting on corporate
sustainability is becoming mandatory. This tie up with ImpactScope will help
regulators quickly identify potential inconsistencies, investigate and also
enable companies to take corrective action. At the same time, our partnership
with ImpactScope broadens and deepens access to new customers and gives us
valuable exposure to opportunities in various blockchain ecosystems."

 

Sean Murphy, Chief Executive of ImpactScope commented: "By their own
admission, many financial supervisory authorities are ill-equipped to identify
cases of greenwashing committed by banks and asset managers under their
supervision. GWI saves regulators thousands of hours of research resources
annually. Greenwashing is a crime. It devalues the verifiable
sustainability-linked achievements of good corporate citizens and sows
needless mistrust among consumers. GWI helps regulators spot it faster and
stamp it out."

 

For further information, please visit www.insg.ai
(https://url.uk.m.mimecastprotect.com/s/x7yTCJq43fq3G7JhGRg6V?domain=insg.ai)
or contact:

 

 

 Insig AI plc                            richard.bernstein@insg.ai (mailto:richard.bernstein@insg.ai)

 Richard Bernstein, CEO

 Zeus (Nominated Adviser & Broker)       +44 (0) 203 829 5000

 David Foreman / James Hornigold

 

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