Mindflair PLC said on Tuesday it has raised almost half a million pounds through a share placing, and adjusted its outstanding loan notes to provide additional flexibility and preserve cash for its investments in artificial intelligence-focused businesses.

Shares in Mindflair were down 11% to 0.60 pence each in London after the announcement on Tuesday morning.

The investor in next generation technology focused on artificial intelligence said it raised £490,000 by issuing 81.7 million new ordinary shares at a price of 0.6p per share, representing an 11% discount to its closing price of 0.675p on Monday.

Investors in the placing will also receive one warrant for every two shares issued, subject to approval at the company‘s next general meeting.

Mindflair restructured £1.2 million of loan notes originally issued in December 2022. The revised terms include a cash repayment of £185,250 and the conversion of £469,433 into 78.2 million new shares at the same 0.6p price.

The remaining loan balance, reduced to approximately £800,000, will be repaid in equal installments by December 2025 and December 2026. The company also adjusted the terms of associated warrants, reducing the exercise price to 1.6p from 4p, lowering the vesting hurdle, and extending the exercise period to December 2026.

Mindflair said the restructuring was necessary to provide flexibility as it awaits proceeds from the potential sale of assets within its portfolio.

Mindflair’s newly issued shares from the placing and loan note conversion are expected to start trading on AIM on January 2. Following the admission, the company’s total issued share capital will comprise 526.7 million ordinary shares.

Regarding its portfolio, Mindflair said its Sure Valley Ventures fund is actively pursuing liquidity events, including sales and other monetisation strategies for its investments. The company’s second Sure Valley Ventures fund, supported by the British Business Bank, has invested in eight artificial intelligence-focused companies spanning sectors such as education, e-commerce, transport, and robotics.

Nicholas Lee, director of Mindflair, said: ‘We believe that the placing and re-profile is a good solution for all parties and provides the company with additional flexibility, notwithstanding the proximity of potential realisations from our portfolio. We firmly believe that we are at a very exciting time in the development of the company.’

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