Verses AI Secures US$10 Million Investment From UAE-Based G42

FULL DISCLOSURE: Canacom Group is long the equity of VERSES AI.

Verses AI (CBOE: VERS) has received a vote of confidence from one of the top groups in the artificial intelligence space, after having secured an investment from Group 42 Holdings, a UAE-based artificial intelligence group.

The arrangement has seen G42 invest US$10 million into Verses via unsecured convertible debenture units that are to convert at a price of US$1.20 per share. The arrangement has resulted in G42 becoming a significant shareholder of the company, holding an 11.43% interest in Verses on a partially diluted basis.

“G42 has become a global leader in the AI world with a commitment to champion the technology to drive innovation and progress for every industry and society worldwide. VERSES shares this mission and we are excited and honored to announce this strategic investment to support our shared goal of ensuring that AI becomes smarter, safer, and more sustainable,” commented Verses CEO Gabriel Rene.

READ: Verses AI Sees Over 3,700 Signups For Genius Public Beta Program

Each convertible debenture is priced at $1,000 per each, and is to include 500 share purchase warrants with an exercise price of $1.50 per share. The debenture is to bear interest at a rate of 10% per annum, maturing June 20, 2026. The debt is convertible at the at the earlier of a $15.0 million financing occurring at a price at or above $1.00 per share, the date on which G42 elects to convert the debt, and the maturity date.

Versus has also agreed to issue up to 1.0 million restricted stock units to G42, at a rate of 10,000 RSU’s for every $100,000 in revenue derived from commercial agreements that may be entered into with affiliates of G42.

Verses AI last traded at $1.13 on the CBOE.

FULL DISCLOSURE: Canacom Group, the parent company of The Deep Dive is long the equity of VERSES AI. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

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