$AITX News: Artificial Intelligence Technology Sol
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CEO Raises $4 Million in Funding Through Note Issuance and Issuance of Preferred Share Warrants
Detroit, Michigan, Nov. 02, 2022 (GLOBE NEWSWIRE) -- 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.
About Artificial Intelligence Technology Solutions (AITX)
AITX is an innovator in the delivery of artificial intelligence-based solutions that empower organizations to gain new insight, solve complex challenges and fuel new business ideas. Through its next-generation robotic product offerings, AITX's RAD, RAD-M and RAD-G companies help organizations streamline operations, increase ROI, and strengthen business. AITX technology improves the simplicity and economics of patrolling and guard services and allows experienced personnel to focus on more strategic tasks. Customers augment the capabilities of existing staffs and gain higher levels of situational awareness, all at drastically reduced cost. AITX solutions are well suited for use in multiple industries such as enterprises, government, transportation, critical infrastructure, education, and healthcare. To learn more, visit http://www.aitx.ai, http://stevereinharz.com, http://www.radsecurity.com,http://www.radgroup.ai, and http://www.radlightmyway.com, or follow Steve Reinharz on Twitter @SteveReinharz.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements in this news release other than statements of historical fact are "forward-looking statements" that are based on current expectations and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements, including, but not limited to, the following: the ability of Artificial Intelligence Technology Solutions to provide for its obligations, to provide working capital needs from operating revenues, to obtain additional financing needed for any future acquisitions, to meet competitive challenges and technological changes, to meet business and financial goals including projections and forecasts, and other risks. No information contained in this news release should be construed as any indication whatsoever of the Company's future stock price, revenues, or results of operations. Additionally, any industry data provided herein is of no predictive value regarding the future sale of the Company's products. Artificial Intelligence Technology Solutions undertakes no duty to update any forward-looking statement(s) and/or to confirm the statement(s) to actual results or changes in Artificial Intelligence Technology Solutions expectations.