Irisity AB (”Irisity” or ”the Company”) announced, on the 28th of November, the outcome of the rights issue of units which was announced on October 1st, 2024 (the ”Rights Issue”). The subscription summary shows that approx. 56.8% of the issue was subscribed through unit rights (4,773,602 units), and an additional 2.1% (178,579 units) was subscribed without unit rights. Guarantee commitments account for the remaining 21.1% (1,770,813 units), bringing the total to approx. 80% of the rights issue being fulfilled through subscription and guarantees. Hence, the Company initially receives approx. SEK 56.5m before off-sets and issuing costs, and upon full exercise of all included warrants of series 2024/2025:1 within the framework of issued units, the Company could receive an additional maximum of approx. SEK 10.1m. The exercise period for the warrants runs from May 27th, 2025, to June 10th, 2025, with a subscription price of SEK 1.50 per share.
Analyst Groups view of the Outcome
“The outcome of the rights issue means that Irisity will receive approx. SEK 56m before off-sets and issuing costs, with off-sets amounting to approx. SEK 15.3m. Consequently, the proceeds before transaction costs total SEK 41.2m, and after the repayment of the bridge loan (SEK 21.9m), Irisity will retain approx. SEK 19.3m before transaction costs.
The secured funding through the rights issue enables Irisity to capitalize on the Company’s strong market position and the growing demand for AI-driven video analytics solutions. Apart from repaying the bridge loan, Irisity intends to allocate the net proceeds to support growth initiatives toward market expansion, including new generative AI applications, as well as general working capital needs. Irisity can now shift focus towards the execution of the strategic initiatives, which include a stronger emphasis on a partner-based go-to-market strategy aimed at shortening the working capital cycle, reducing the opex cost base through streamlined R&D operations, as well as a clear focus on expanding the recurring revenue streams.
The abovementioned initiatives are estimated to drive cost reductions, including operational optimization and resource reallocation for the R&D units. Analyst Group projects that these measures will enhance efficiency and reduce the burn rate going forward, aligning with Irisity’s broader strategic objective of achieving profitability and positive cash flow.
In light of challenging market conditions, where many smaller companies face difficulties in raising capital under favorable terms, Analyst Group considers the outcome of the rights issue reasonable, particularly given the significant amount of capital raised.
In summary, the completed rights issue enables Irisity to execute on the growth initiatives ahead, leveraging the scalable AI platform and the advanced AI capabilities of the Company’s subsidiary Ultinous, thereby advancing towards profitability, step by step. With the Company’s global footprint, diversified customer base, strong portfolio of AI-driven video analytics solutions, combined with a clear roadmap towards profitability, Irisity is well-positioned to capitalize on the expanding AI market ahead.”
