Technology consolidator Sealand Capital Galaxy (LON: SCGL) is making its maiden AI investment. This sparked a 132% jump in the share price to 0.325p. That values the fully listed company at £2.4m.
After evaluating suitable opportunities, the company has decided on EVOO AI (www.evoo.ai), which is a data platform with AI learning models incorporated. It provides insights to the luxury goods sector, such as market trends and consumer behaviour. The main product is Olive, a luxury e-commerce marketplace that offers personalised shopping.
The company was incorporated on 15 December 2023 and in April it became a plc. That was after 40 million shares were issued to acquire Rule 7 Productions Ltd.
On 14 March 2024, EVOO AI had net assets of £848,000, including fixed asset investments of £800,000 and £1 in cash.
The plan is for Sealand Capital Galaxy to invest in a convertible loan note. The first tranche is £200,000 and the second trance will be £100,000. The annual interest rate is 12% and the term is 18 months. Interest is payable on maturity. There will be a fee of one million warrants exercisable at €0.06/share. If the company floats at a lower share price the exercise price will match that price.
The conversion price will be the lower of €0.03 or a 50% discount to the flotation price. There is also a proposed agreement on co-investment by the two companies.
Elena Suet Sum Law has stepped up from general manager to chief executive. Nelson Law has resigned as chairman. Geoffrey Griggs remains a non-executive director.
Sealand Capital Galaxy has entered an agreement with Toronto-based Liberty North Capital for a placing to raise £170,000 at an issue price of 0.15p/share. There will also be a convertible loan issue of up to £3m, yielding 12%. The conversion price will be based on an average market price or the last placing price.