No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Catenai said on Friday that it has increased its stake in artificial intelligence software developer Alludium through a further 250,000 investment as part of a broader fundraising by the business
The AIM-traded group said the investment formed part of a 1m funding round for Alludium at a pre-money valuation of 9m and would increase its shareholding from around 13% to 16.1%.
It said the funding followed Alludium's recent public-commercial launch announced earlier this week, with proceeds earmarked for marketing initiatives and further development of its platform.
Alludium is currently pre-revenue and reported a loss of around 33,000 for the year ended 31 August 2024, according to Catenai.
The company said the new investment would be funded from existing cash reserves and confirmed it had sufficient cash resources to cover corporate costs for more than 18 months.
Catenai also provided an update on its loan note exposure to Klarian, to which it previously extended a 450,000 unsecured convertible loan facility.
Klarian was expected to provide a corporate update in early April and was due to repay 624,250 under the loan note agreement by 31 March, alongside related fees, with an additional fee of 74,910 payable if repayment occurs after 28 February.
Separately, Catenai said it had secured a new technology services engagement from Charlton Athletic Community Trust, under which the company would receive a modest fee.
The board also said it was reviewing the company's Bitcoin treasury policy, noting that no purchases had yet been made.
In connection with its investment relationship with Alludium, Catenai said it had issued 100 million warrants to the founders of Alludium, exercisable at 0.3p per share for a period of 18 months.
"We are delighted to have made our second investment in Alludium following its successful public launch," said interim chief executive John Farthing.
"We believe the platform has the capability to revolutionise the business landscape through automation, boosting corporate growth and employee productivity.
"Catenai will continue to be in a strong financial position following the investment and looks forward to providing the market with further updates."
At 1251 GMT, shares in Catenai were up 23.02% at 0.33p.
Reporting by Josh White for Sharecast.com.