Alteration Earth Acquires Pri0r1ty AI in £13 Million Reverse Takeover, Moves to AIM

Reverse Takeover and AIM Listing

Alteration Earth PLC, a London-based special purpose acquisition company, has successfully completed a reverse takeover of Pri0r1ty AI Ltd, an artificial intelligence-driven Software as a Service (SaaS) provider. The deal, which includes a fundraising effort of £855,000 through a placing and subscription of new shares at 13.5 pence, will see Alteration Earth move its listing from the London Main Market to the Alternative Investment Market (AIM) 1

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The newly formed company, to be renamed Pri0r1ty Intelligence Group PLC, is set to commence trading on AIM on December 30, 2024, with an initial market capitalization of £13 million based on the offer price 1

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Pri0r1ty AI's Technology and Market Position

Pri0r1ty AI has developed an AI-driven SaaS solution primarily targeted at small and medium enterprises (SMEs). Their flagship product, 'Priority Advisor', is a digital agent for automated business processes that leverages deep learning and AI models to enhance efficiency 1

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The platform can be utilized by businesses to engage investors, customers, and other stakeholders through various digital channels, including websites, instant messaging, and email. This bespoke AI-powered advisory bot assists in customer engagement and data collection, potentially offering significant value to SMEs looking to optimize their operations 1

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Investment and Ownership Structure

Primorus Investments PLC, an AIM-listed company, has played a significant role in this transaction. Initially holding a 28% stake in Alteration Earth, Primorus has contributed an additional £80,000 to the equity raise, purchasing 592,592 new ordinary shares at 13.5 pence per share 1

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Post-acquisition, Primorus's ownership in Pri0r1ty Intelligence will decrease to approximately 12% of the issued share capital. However, when combined with the holdings of Primorus directors Rupert Labrum and Matthew Beardmore, the total stake will amount to about 16% of the company 1

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Management and Future Prospects

Key figures associated with the deal, Daniel Maling and Daniel Gee, have committed to further invest in the company within 30 days following the admission to AIM 2

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Despite Alteration Earth reporting a loss of approximately £273,000 for the fiscal year ending September 30, 2023, the acquisition of Pri0r1ty AI is expected to enhance the company's product offerings and market position within the AI industry 3

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Market Impact and Expectations

The integration of Pri0r1ty AI into Alteration Earth's operations marks a significant move in the AI sector, particularly for solutions targeting SMEs. As the newly formed Pri0r1ty Intelligence Group PLC prepares to list on AIM, investors and industry observers will be keenly watching its performance and impact on the broader AI and SaaS markets 1

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The success of this venture could potentially signal growing interest in AI-driven solutions for smaller businesses, an area that has often been overshadowed by enterprise-focused AI developments. The market's response to this £13 million valuation will be a key indicator of confidence in AI technologies tailored for SMEs.