Trust Stamp (OTCQX:IDAI, EURONEXT:AIID) Inc, a provider of AI-powered trust and identity services across multiple industries, has announced the successful completion of a combined public and private fundraise totaling US$8.84 million.
The Atlanta, Georgia-based company said it closed investments totaling $8.84 million through a combination of the fundraise and warrant executions, of which $59,212 is pending transfer from escrow and subject to cancellation. It added that 3,816,967 new shares of Class A common stock and 1,378,766 new warrants will have been issued upon completion of all transactions.
Trust Stamp said it has raised $30.05 million to date.
In a statement, Trust Stamp CEO Gareth N. Genner said: "Trust Stamp's unique proposition of privacy-first, secure, and accessible biometric and digital identity solutions continues to be validated with the support of both new and returning shareholders, strategic international partnerships, and cross-industry demand for our scaling portfolio of transformative identity, data protection, and fraud-prevention capabilities.”
READ: Trust Stamp advances its innovative intellectual property portfolio
The company said that the funds raised during 2021 position it to capitalize on global market opportunities by strengthening market penetration and further developing intellectual property to address emerging needs of consumers and organizations in its increasingly digitally connected world.
“We are thrilled to continue this growth trajectory alongside our expanding base of mission-aligned shareholders as the key drivers for our planned uplisting to the Nasdaq,” said Genner.
The fundraise started on August 25, 2021, initially targeted a maximum raise of $5 million. With the key goal of raising money to support shareholders' equity requirements for Trust Stamp (OTCQX:IDAI, EURONEXT:AIID)'s April 2021 application to list on the tech-dominated Nasdaq, Trust Stamp (OTCQX:IDAI, EURONEXT:AIID)'s board later approved an increase in the maximum raise to $6.2 million following consultations with Nasdaq staff.
The company said that each share issued in this round of funding is paired with a warrant to purchase an additional share for $4, with a subscription price per share and warrant unit of $4. The Regulation CF offering maintained a minimum investment of $1,000. While the Regulation D and Regulation S offerings initially featured a minimum investment size of $5,000.
Trust Stamp said it lowered the minimum investment to $1,000 as a result of increased investor interest.
One of the company's earliest investors, Second Century Ventures LLC (SCV), together with REach Ventures LLC, an SCV company, respectively exercised 2,037,560 and 400,641 warrants initially issued on September 30, 2016, totaling $3.32 million raised and 2,438,201 new shares issued from the execution of warrants.
Following these transactions, SCV and REach hold 2,622,995 and 932,110 outstanding warrants respectively, said the company. Following the completion of all transactions, the company will have 23,215,662 Class A common stock in issue.
Trust Stamp’s technology empowers organizations with advanced biometric identity solutions that reduce fraud, protect personal data privacy, and increase operational efficiency.
Located in seven countries across North America, Europe, Asia, and Africa, Trust Stamp trades on the OTCQX Best Market and Euronext Growth in Dublin. Founded in 2016 by CEO Genner and Andrew Gowasack, Trust Stamp now employs over 90 people.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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