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ATLANTA - Trust Stamp (NASDAQ:IDAI), an artificial intelligence technology provider with a current market capitalization of $12.75 million, has entered into a securities purchase agreement with an unnamed institutional investor for a registered direct offering and a concurrent private placement, according to a press release from the company. According to InvestingPro data, the company has faced significant challenges, with revenue declining by 52% in the last twelve months and a current InvestingPro Financial Health score indicating weak fundamentals. The deal, announced today, involves the sale of common stock and warrants with a combined gross proceeds of approximately $3.5 million.
The agreement stipulates the sale of 414,202 shares of common stock, or pre-funded warrants as an alternative, plus Series A and Series B Warrants to purchase additional shares. The combined offering price for each share or warrant and the accompanying warrants is set at $8.45, close to the current trading price of $8.26. InvestingPro analysis shows the stock has experienced high volatility, with the price ranging from $2.24 to $37.50 over the past 52 weeks. The Series A Warrants allow the purchase of up to 414,202 shares of common stock, while Series B Warrants allow for up to 207,101 shares. These warrants are immediately exercisable and will expire five years from the exercise date.
The expected closing date of the offering is on or about January 8, 2025, subject to customary closing conditions. Maxim Group LLC is the sole placement agent for the offering.
The securities offered in the registered direct offering are being made available through a shelf registration statement on Form S-3, which was declared effective by the U.S. Securities and Exchange Commission on April 12, 2023. The prospectus supplement related to the offering will be filed with the SEC and will be available on their website.
The private placement warrants and the shares issuable upon their exercise have not been registered under the Securities Act of 1933 and are being offered under Section 4(a)(2) of the Act and Regulation D. This press release does not constitute an offer to sell these securities, nor a solicitation of an offer to buy in any jurisdiction where such an offer or sale would be unlawful without registration or qualification under the securities laws of that jurisdiction.
Trust Stamp, headquartered in Atlanta, operates globally, providing AI-powered software and services in various sectors including banking, finance, regulatory compliance, and government. With a gross profit margin of 51.35% but negative EBITDA of $10.84 million in the last twelve months, the company faces significant operational challenges. InvestingPro subscribers can access 8 additional key insights and detailed financial metrics to better understand the company's positioning and potential. The company cautions that this announcement contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.
The information in this article is based on a press release statement from Trust Stamp.
In other recent news, Trust Stamp, an AI technology company, has announced a 1-for-15 reverse stock split, a move aimed at ensuring compliance with Nasdaq's minimum bid price requirement. This decision comes amidst notable volatility in the company's stock price. Trust Stamp's CEO, Gareth N. Genner, has indicated that this strategy aligns with the long-term interests of shareholders and may attract a broader range of investors.
On the other hand, T Stamp Inc., a prepackaged software services company, has seen its stockholders approve key proposals, including a reverse stock split and issuance of new shares and warrants. The company has also undergone leadership changes, with Andrew Scott Francis, the current Chief Technology Officer, appointed to the Board of Directors.
Both companies have been actively addressing compliance with Nasdaq's equity requirements. T Stamp Inc. has regained compliance through strategic transactions, including the issuance of shares to convert debt into equity, a licensing agreement with Boumarang Inc., and the sale and exercise of warrants with institutional investors.
In terms of financial performance, Trust Stamp reported revenue of $2.16 million in the last twelve months, with a gross profit margin of 51.35%. These are the recent developments shaping both Trust Stamp and T Stamp Inc.
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