DigiMax, a Toronto-based Artificial Intelligence (AI) technology company, announced this Tuesday it is launching its ESG division, along with an investment in MADA Analytics; a platform for renewable energy developers to get funded faster and at lower costs of capital.
Firstly, DigiMax’s ESG Solutions Division will concentrate on using AI and predictive analytics to close multiple gaps in the ESG (Environmental, Social, and Governance) investment space.
Moreover, according to the statement, DigiMax’s ESG division has opportunities in green energy development and operations; tracking and predicting carbon credit arbitrage and trading opportunities around the globe; and also monitoring and evaluating ESG opportunities and trends on behalf of large investors.
As a result, and as a first step in the launching of the ESG division, DigiMax invested $250,000 into MADA Analytics. The investment took the form of an unsecured, convertible note. The investment and the note will provide an interest of 5% per year and is convertible to common shares of MADA; at a price per share of US$5 million divided by the total number of outstanding common shares immediately before maturity.
In addition, DigiMax also acquired 100% of the outstanding shares of MADA. However, MADA needs to achieve specific operational milestones before the purchase of the outstanding shares. These milestones being; raising a minimum of US$750,000 pursuant to one or more financings; MADA entering into customer contracts to generate minimum revenues of €1 million; during the 2-year term of the contracts, among others.
Also recommended for you: FuelCell Energy reports annual earnings of $69 million. Click here to read.
DigiMax investing in the perfect partner
Furthermore, as outlined above, the purchase price under the agreement, once the milestones are fulfilled, is $5 million; or otherwise, not less than 80% of the valuation reached by an independent valuator or valuators selected by MADA and DigiMax.
On the other hand, the investment in MADA makes perfect sense for DigiMax; MADA is a unique AI engine, enabling existing and proposed renewable energy products; to predict and prove stable and predictable cash flows; data-driven performance insurance for project finance; and optimization of storage systems, financial models, and enhanced project finance returns for investors.
DigiMax CEO Chris Carl, said about the investment. “We believe that MADA is a perfect partner for DigiMax as we can provide the AI expertise that they require to take their already amazing product offering to the next level.”
Finally, MADA CEO Daniel Gimpel, said. “The engineering and project finance skillsets inside of DigiMax can help both our companies become a leading global brand name for both developers and investors to assist in making their renewable energy projects the best that they can be.”
