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Risk Intelligence A/S: Risk Intelligence launches large data and AI project and conducts directed issues of shares and warrants as part of funding
Risk Intelligence A/S ("Risk Intelligence" or "the Company") today announces the official launch of an ambitious data and artificial intelligence (AI) project over the next three years, which will substantially and fundamentally improve the use of data in Risk Intelligence and accelerate pace of operations and reduce production costs. The project and its related business development will be funded by a combination of long-term financing from Vækstfonden (The Danish Growth Fund), a bank credit facility and equity.
The company further announces that as part of the funding for this project, the Board of Directors, partly with the support of the authorisation given in the Company's Articles of Association and partly given approval at a planned forthcoming Extraordinary General Meeting on 18 June 2019, have decided to conduct a directed share issue to cornerstone investors of initially approx. DKK 2.8 million and a directed issue of warrants, which can provide the Company with a further approx. DKK 3.4 million in a later stage.
Through the initial directed share issue, the Company has secured working capital in order to work towards set goals, in a cost and time-efficient manner and thereby strengthen the Company's financial position. In addition to the directed issues of shares and warrants, Risk Intelligence will secure a long-term loan of DKK 3 million via Vækstfonden. Notice to Extraordinary General Meeting is scheduled to be published shortly.
Motive for the directed issues of shares and warrants
To enable strong expansion and the effective use of resources, Risk Intelligence has established an overall IT strategy in order to develop the Company through the visionary use of information technology and artificial intelligence, which will contribute to develop new and existing products and services. By implementing artificial intelligence into the Risk Intelligence System, the production process will lead to more efficient information workflows, tailor client output to individual needs,
reduce production costs and thereby create more value for the clients, the company and its shareholders. The reason to deviate from the shareholders preferential rights is that the Board of directors considers a selected group of existing shareholders as cornerstone shareholders. The share subscription price is without discount as per the time of agreement and the warrants are with a 20% premium.
More information about the directed issues of shares and warrants as well as the long-term loan
Initially, a total of 71,795 shares are issued at a price of DKK 3.90 per share. This price has been based on Risk Intelligence's average price during the three trading days ending two days before the decision on the directed new issue. After the initial issue has been registered, the number of shares in Risk Intelligence increases by 717,949 from 7,669,140 to 8,387,089. As a result, the Company's share capital is increased by DKK 71,795 from DKK 766,914 to DKK 838,709. The dilution for the Company's existing owners will be approximately 8.6 percent as a result of the initial issue.
In addition, as described above, an additional 717,949 attached consideration-free warrants of series TO 1 are issued. Each warrant entitles the holder to subscribe for one (1) new share at a price of DKK 4.68 per share (+20% of the subscription share price 3.9). The warrants have a conversion option after a period of 12 months.
The directed issue of shares comprises a total of approx. DKK 2.8 million and further, the Company can be provided an additional approx. DKK 3.4 million if the warrants in the directed issue of warrants are fully exercised. The total amount Risk Intelligence can be provided through the issues are thus approx. DKK 6.2 million.
The existing owners that have subscribed for shares in the directed share issue are Andreas Klainguti, Christian Mellentin, Gerhard Dal, Claus Hansen, Jens Olsson, Christian Månsson, Jimmie Landerman, Jan Holm and Dirk Siebels.
This information is information that Risk Intelligence A/S is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out below, on 22 May 2019.