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(Sharecast News) - Catenai announced a �0.75m fundraise on Friday, through the issue of 500 million new shares at 0.15p each, conditional on shareholder approval and a proposed share capital reorganisation to be voted on at its annual general meeting in May.
The AIM-traded firm said the placing included a �0.6m subscription from investors and a further �0.15m from Sanderson Capital Partners.
Directors had agreed to convert �45,000 of accrued fees into shares at the placing price.
The digital media and technology company said it also intended to invest �0.5m in Alludium, a pre-revenue artificial intelligence start-up developing a multi-agent AGI platform that integrates with foundation models including OpenAI's GPT, Anthropic's Claude, and Google's Gemini.
Catenai said it would receive 675,675 shares in Alludium at 74p apiece, along with a 10% investment bonus in shares.
A second investment of �0.45m was planned, subject to available funding, which would bring Catenai's total interest to around 13% of Alludium's enlarged capital.
Subject to Alludium's commercial launch, Catenai said it would issue 100 million warrants to Alludium's founders, exercisable at 0.3p per share within 18 months.
The firm said it also intended to issue a further 20 million warrants to its broker and 90 million director warrants to align incentives.
Due to the placing price being below the current nominal value of its shares, Catenai said it would seek approval for a capital reorganisation.
Application for admission of the new shares to AIM would follow the AGM.
The board said it had deemed the terms of related party transactions, including director participation and Sanderson Capital's subscription, to be fair and reasonable.
"We are thrilled to make our initial investment in Alludium, a company in the AI space," said interim chief executive officer John Farthing.
"We are excited about the incredible potential that the board believes Alludium presents given the market opportunity and the innovative and driven team of Alludium, who have a proven track record of building technology companies and making successful exits."
At 1111 BST, shares in Catenai were down 11.05% at 0.17p.
Reporting by Josh White for Sharecast.com.