In order to implement our business plan, we announced an agreement with the Global Corporate Finance Opportunities 15 fund, GCFO15, a financial vehicle managed by the Alpha Blue Ocean (ABO) investment fund. We have thus closed the financing needs for the next three years through the issuance of €20 million of bonds convertible into shares.

This capital increase will allow us to undertake a business plan to bring to market all the software-as-a-service products we are working on.

According to statements by Amine Nedjai, CEO of Alpha Blue Ocena, "Artificial intelligence solutions available on the market often require large amounts of data and demonstrate little ability to adapt to changing environments. The technology developed by the Substrate AI team addresses these weaknesses, enabling the application of artificial intelligence to new and different sectors. This funding will enable the company to carry out its business plan." 

Up to 20 million will be available in several tranches. The first tranche will be between 500,000 and 1 million, followed by subsequent tranches of between 500,000 and 2.5 million, depending on the fulfillment of certain preconditions. 

The bonds bear interest at 0% and their conversion price will be 95% of the lowest weighted average share price in the seven trading sessions held prior to the date GCFO15 requests the conversion of the bonds. The bonds have a maturity of 12 months and may be converted at any time after subscription.

In addition, the fund will have warrants entitling them to acquire new shares in the company at a price equal to a 20% premium to the lowest weighted average price during the 10 trading days prior to the subscription of a tranche. The exercise of these warrants would represent additional successful financing of up to €4 million, and demonstrates GCFO15's commitment to the good performance of our shares in the medium and long term.

The potential of SaaS

We develop Artificial Intelligence systems by subscription for companies in the form of software as a service. One of our products has been put on the market thanks to our partnership with Microsoft to sell it in the Azure marketplace. It is a plug and play solution, ready to download, connect and start using, and its objective is the autonomous detection of anomalies.

This solution will be followed in the near future by others related to engineering, human resources, health, agriculture and finance.

The software as a service industry has grown by more than 500% in the last 7 years and, according to the consulting firm Gartner, it moves around 172 billion dollars a year. These systems account for 70% of all software systems used by organizations. Within this industry, AI services will be the fastest growing with figures close to 30% over the next few years.

"This agreement means that we will be able to work with peace of mind over the next few years on the development of the project and the plan we have on the table. It is also a vote of confidence in our project by the Global Corporate Finance Opportunities 15 fund and Alpha Blue Ocean."says José Iván García, CEO of the company.