Netcapital acquires NetNudge AI platform to transform capital markets with AI agent technologies

Netcapital acquires NetNudge AI agent platform from Codesharp By Investing.com

BOSTON - Netcapital Inc. (NASDAQ:NCPL) acquired substantially all assets related to the NetNudge AI Agent Platform from Codesharp Corporation, a Canadian company, according to a press release statement. The transaction closed on May 22. The consideration consists entirely of Netcapital Series A Convertible Preferred Stock. The company issued 600,000 shares at closing with a stated value of $1.50 per share. An additional 600,000 shares may be issued if the acquired business unit achieves $3.0 million of cumulative GAAP revenue over a 36-month period. The preferred shares carry a fixed one-for-one conversion ratio into common stock at the company's sole option and do not include anti-dilution protections or cash dividends.The acquisition comes as Netcapital's stock has surged 92% over the past week and 139% year-to-date, though the company maintains a modest market capitalization of $12.4 million. The earnout target of $3 million represents more than four times the company's current annual revenue of $0.74 million for the last twelve months. The acquired platform includes AI agent technologies for retrieval-augmented generation, workflow intelligence, automation, enterprise knowledge management, analytics, customer interaction analysis, and AI-assisted decision support. The acquisition also includes related datasets, prompts, workflows, model integrations, APIs, and development rights. Netcapital operates a regulated funding portal and broker-dealer. Chief Executive Officer Todd Violette said the company plans to deploy the NetNudge AI Agent Platform inside Netcapital and license it as a stand-alone AI service to other enterprises, including participants in private capital markets. The company has begun building proprietary training data modules by capturing internal workflows, customer service interactions, onboarding procedures, and compliance processes across its funding portal and broker-dealer businesses. These materials are being structured to train specialized AI agents on the NetNudge platform. Netcapital scheduled a conference call for today at 4:30 pm ET to discuss the acquisition and the company's strategic direction. In other recent news, Netcapital Inc. reported a significant 38.6% decline in its Q3 FY2026 revenue, dropping to $94,000, mainly due to decreased funding portal fees. The company also experienced a $2.2 million operating loss, which represents a 29.4% increase from the previous year. Despite an improvement in loss per share from $1.57 to $0.32, concerns over financial health and limited cash reserves remain. Additionally, Netcapital entered into a Securities Purchase Agreement with Labrys Fund II, involving a $290,000 convertible promissory note and a warrant to purchase 250,000 shares of common stock. The note was issued for $250,000, with various fees deducted for legal and due diligence costs. In a strategic shift, Netcapital announced plans to transition from a transaction-based model to a data-driven capital markets infrastructure platform, leveraging AI-powered tools. This move comes as Todd Violette takes on the role of CEO, following the termination of former CEO Rich Wheeless. Violette brings over 25 years of experience in capital markets and fintech to the company. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Netcapital Acquires NetNudge AI Agent Platform

Netcapital Inc. is a fintech company with a scalable technology platform that allows private companies to raise capital online and provides private equity investment opportunities to investors. It provides private company investment access to accredited and non-accredited investors through its online portal (www.netcapital.com), which is operated by its wholly owned subsidiaries Netcapital Funding Portal, Inc. and its broker-deal subsidiary, Netcapital Securities Inc. In addition to access to the funding portal, it provides services, including a fully automated onboarding process; automated filing of required regulatory documents; compliance review; a custom-built offering page on its portal Website; third party transfer agent and custodial services; e-mail marketing to its list of investors; rolling closes, which provide potential access to liquidity before the final close date of an offering; assistance with annual filings, and direct access to its team for ongoing support.