REG - Insig AI Plc - Trading update & equity funding facility proposal

Insig AiAnnouncement

02/04/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240402:nRSB9011Ia&default-theme=true

RNS Number : 9011I  Insig AI Plc  02 April 2024

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
(https://url.uk.m.mimecastprotect.com/s/x7yTCJq43fq3G7JhGRg6V?domain=insg.ai)
or contact:

 

 

 Insig AI plc                            richard.bernstein@insg.ai

 Richard Bernstein                       colin.mcveigh@insg.ai (mailto:colin.mcveigh@insg.ai)

 Colm McVeigh, CEO
 Zeus (Nominated Adviser & Broker)       +44 (0) 203 829 5000

 David Foreman / James Hornigold

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDUASRRSKUSRUR