Primorus Investments invests in Pri0r1ty AI

30th Aug 2024 12:50

(Sharecast News) - Primorus Investments announced a new strategic investment on Friday, subscribing for 18,100,000 ordinary shares in Pri0r1ty AI for £0.3m.

The AIM-traded firm said the investment, funded from Primorus's existing cash reserves, represented an 8.45% stake in Pri0r1ty following a recent £0.55m fundraising by the AI company aimed at supporting its software rollout.

It said Pri0r1ty AI, which reported a loss of £51,530 for the 2023 financial year, was currently the subject of a potential acquisition by Alteration Earth (ALTE).

As announced by ALTE on 27 June, the two companies had entered into non-binding heads of terms regarding the acquisition of Pri0r1ty's entire issued share capital.

However, the completion of the acquisition was contingent on legal, financial, and other due diligence, as well as the successful negotiation of a binding share purchase agreement (SPA).

Primorus's investment in Pri0r1ty AI came amid the potential acquisition, positioning the company to benefit if the deal moved forward.

In addition to the investment, Primorus, along with its directors Rupert Labrum and Matthew Beardmore, held a significant stake in Alteration Earth, collectively owning 8,250,000 shares representing 45.83% of its issued share capital.

"We are delighted to welcome such a well regarded technology investor as Primorus as a shareholder," said Pri0r1ty chief executive officer and co-founder Daniel Gee.

"This investment round supported by Primorus has allowed us to accelerate our go to market strategy and expand our team with a wealth of experience from the SaaS industry."

Gee said the funds would allow the firm to become revenue-generating and welcome the first customers to its flagship product, Pri0r1ty Advisor.

"We are excited to onboard waiting list customers and release further product developments ahead of our proposed admission to AIM."

At 1223 BST, shares in Primorus Investments were up 14.75% at 3.5p.

Reporting by Josh White for Sharecast.com.