3rd Mar 2020 16:21
(Alliance News) - Catena Group PLC on Tuesday said it has entered into a a conditional agreement to acquire a 9.1% stake in artificial intelligence company Insight Capital Partners Ltd for GBP1.5 million.
The company - formerly known as Ultimate Sports Group PLC - said it has also secured a six-month option to increase its holding in Insight to 30% for a further GBP5.0 million in cash.
For its financial year ended March 31, 2019 Insight reported pretax loss of GBP1.1 million on revenue of GBP700,000. Consolidated net assets stood at GBP500,000.
"We are delighted to have secured this investment in Insight. Machine learning is set to revolutionise the asset management and financial services industries and we believe that Insight is ideally placed to capitalise on the exponential growth in the sector," said Catena Chief Executive Matthew Farnum-Schneider.
In a separate statement, the company said it intends to raise at least GBP1 million through the subscription of at least 4 million shares at 25.0 pence each.
Additionally, Catena said it will raise GBP2 million through the issue of convertible loan notes. The loan notes mature three years after issue, are interest free and are convertible into Catena shares at 25p each.
The stock was trading 1.9% lower at 26.99p each on Tuesday afternoon in London.
Proceeds realised from the subscription and notes issue will be used to finance the investment in Insight Capital and for general working capital purposes.
By Ife Taiwo; [email protected]
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