LONDON: Insig AI, the data science and machine learning business, has acquired a 5.45% equity interest in ImpactScope OÜ.
ImpactScope is an award-winning European impact-focused AI and blockchain company, registered in Estonia. The consideration is through the issue of 900,000 ordinary shares of shares of 1 pence each in the Company at a price of 13.75p per share. The Consideration Shares will be subject to a lock-in arrangement for a minimum of two years.
ImpactScope has appointed Insig AI as its exclusive agent for global sales to asset managers and international regulators of ImpactScope’s award-winning Greenwashing Identifier (“GWI”).
GWI is an AI and blockchain powered application capable of identifying inconsistencies and unsubstantiated claims in statements and numbers across multiple datasets, including annual reports, ESG reports, earnings call transcripts, social media posts, news articles and carbon offset purchase transaction records. The partnership provides Insig AI with 40% of revenues from sales of the GWI.
ImpactScope has also granted Insig AI an option to subscribe EUR 800,000 for further equity securities, as part of a following a future funding round, which values ImpactScope at EUR 10,000,000 or more on a pre-money basis.
ImpactScope has designed the world’s first carbon emissions calculation tools for digital asset exchanges and crypto mining companies. Clients and partners include YouHodler, Climate Focus, US BTC Corp (Hut8), NextEarth and Crypto2Cash. In the last quarter of 2023, ImpactScope won several accolades for its work on GWI, including the Global Financial Innovation Network Eureka Prize and the Green Cross Climate Positive Award at COP28. GWI has been tested by regulators in multiple jurisdictions and many of its features were designed in collaboration with the World Bank and the UK Financial Conduct Authority.
The Consideration Shares will be satisfied partly from the issue of 505,888 existing Ordinary Shares held in treasury and partly from the issue of 394,112 new Ordinary Shares.
Application will be made to the London Stock Exchange for admission of the New Ordinary Shares to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings in the New Ordinary Shares will commence on or around 4 June 2024.
The New Ordinary Shares will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares.
Richard Bernstein, Chief Executive of Insig AI commented: “We’re delighted to have reached agreement with ImpactScope. Reporting on corporate sustainability is becoming mandatory. This tie up with ImpactScope will help regulators quickly identify potential inconsistencies, investigate and also enable companies to take corrective action. At the same time, our partnership with ImpactScope broadens and deepens access to new customers and gives us valuable exposure to opportunities in various blockchain ecosystems.”
Sean Murphy, Chief Executive of ImpactScope commented: “By their own admission, many financial supervisory authorities are ill-equipped to identify cases of greenwashing committed by banks and asset managers under their supervision. GWI saves regulators thousands of hours of research resources annually. Greenwashing is a crime. It devalues the verifiable sustainability-linked achievements of good corporate citizens and sows needless mistrust among consumers. GWI helps regulators spot it faster and stamp it out.”
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