Artificial Intelligence Technology Solutions (AITX) Fundraising Update | Martech Edge | Best News on Marketing and Technology
Artificial Intelligence Technology Solutions (AITX) Fundraising Update

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Artificial Intelligence Technology Solutions (AITX) Fundraising Update

Artificial Intelligence Technology Solutions (AITX) Fundraising Update


Published on : Nov 2, 2022

CEO Raises $4 Million in Funding Through Note Issuance and Issuance of Preferred Share Warrants

Artificial Intelligence Technology Solutions, Inc., (the Company) (OTCPK:AITX), has announced that on October 28, 2022 it issued a $4 million note to its largest single investor thereby securing a loan that matures in 4 years, bears interest at 15% per annum, has an original issue discount of $500,000, provides cash proceeds to the Company of $3.5 million, and includes warrants to acquire additional preferred equity shares (the “Fundraise”).

The net effect of the Fundraise does not materially affect the Company’s common stock shareholders or common shareholders’ equity percentage since Steve Reinharz, AITX Founder and CEO, has effectively reduced his stake by approximately 20% (from fully diluted ownership of 65% to 54%) to achieve the funding without any further dilution to common shareholders.

Steve Reinharz commented, “My commitment has always been to make AITX along with its RAD subsidiaries the dominant player in the evolving #proptech industry, which we feel we helped write the book on. This funding is crucial to the Company and will allow us to continue to grow while adding potential value to all stakeholders.” Reinharz continued, “Certainly, I don’t love reducing my overall stake, but the way this deal issues preferred shares and doesn’t affect common shareholders, is a significant demonstration of my commitment to the Company’s mission and to our shareholders.”

The financial commitment of this debt strengthens AITX’s ability to continue to fund operations and growth along with increasing revenues and reduced reliance on market-based funding.