Private Placement Boosts Funding for Climate Risk Solutions Amid Market Growth

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Aisix Solutions Inc. (AISX:TSX.V;  AISXF:OTCQB; QT7: FSE) recently disclosed a non-brokered private placement worth up to CA$500,000. The placement will include the issuance of a maximum of 16,666,667 common shares, priced at three cents each. As per the company, funds raised from this offering are intended for working capital and general business purposes.

Pending typical regulatory clearances, including that of the TSX Venture Exchange, this deal does not require a minimum gross proceeds amount. The transaction may conclude in one or several tranches, with the first closure expected around September 30. Under Canadian securities regulations, shares issued from this offering will face a mandatory hold period of four months and one day.

The Expanding Climate Risk Solutions Market

As various industries increasingly acknowledge the necessity to prepare for climate-related challenges, the digital climate risk solutions sector has expanded swiftly. ICF reported that climate risk modeling has been crucial in aiding organizations to forecast weather patterns and assess potential climate change impacts. Through advanced data analytics, this modeling has helped companies build resilience and adapt in key areas like infrastructure, energy needs, and financial systems. Organizations employing climate risk models have been able to identify vulnerabilities and devise long-term strategies to manage risks linked to extreme weather conditions such as heatwaves, droughts, and flooding.

Verdantix underscored the substantial growth in the global climate risk digital solutions market, predicting an increase from US$880 million in 2021 to over US$4 billion by 2027. This growth has been fueled by increasing demand for precise climate risk assessments, especially as global regulations such as TCFD and SEC climate-related disclosures take effect. Verdantix also emphasized that rising losses from extreme weather events, estimated at US$150 million in the US alone in 2021, have further prompted companies to invest in climate risk solutions to protect their assets and minimize potential financial damages.

The Catalysts For Aisix

The company’s investor profile highlights that Aisix's innovative climate risk solutions, which leverage advanced AI and data analytics, are a major catalyst for its growth potential. Aisix has embedded itself in this growing market, with its Climate AI technology developed to meet the increasing demand for digital solutions addressing climate risks. The company has also emphasized its partnerships with government agencies, particularly its involvement in creating the National Flood Hazard Data Layer in Canada, a project praised by Alexandre Beaulieu, Director of Canada’s Centre for Mapping & Earth Observation, for its significant contribution.

Aisix Solutions’ revenue model, including one-time fees and subscription-based services, allows it to cater to a wide array of clients, from individual investors to large enterprises in sectors like insurance. The global market for climate risk digital solutions continues to grow, offering Aisix long-term opportunities to expand its presence.

Ownership and Share Structure

As for the ownership of Aisix, two insiders hold 10.38%, or 9.71 million shares, of the company. They are CEO and Director Belantis with 8.58% or 8.32 million shares and Cofounder and Director David Poole with 1.8% or 1.39 million shares.

Retail investors own the remaining shares as there are no institutional owners.

In terms of structure, Aisix has 96.96 million shares outstanding and 87.25 million free-float traded shares.

The firm's market cap is CA$4.36 million, and it trades in a 52-week range of CA$0.03 and CA$0.13 per share.