Generative AI Solutions Corp. is pleased to announce that it has signed a non-binding letter of intent to acquire all outstanding securities of Global AI Billing Corp. on April 24, 2023 for 7.5 million common shares of GenAI (“GenAI Shares”) and GenAI’s assumption of $1.25 million of existing debt of Global AI Billing (the “Proposed Transaction”) . Global AI Billings’ notable assets include a 10% interest in Remitz, Inc, (“Remitz”), a medical billing provider that has developed proprietary artificial intelligence (“AI Billing”) technology to bill outstanding accounts receivable on behalf of medical organizations to collect efficiently The United States. To date, the AI billing system used at Remitz has billed over $100 million at an estimated gross margin of 40% and served providers more than a million patients.
Ryan Selby, CEO of GenAI, comments, “This proposed acquisition has the potential to give us an equity stake in a company that has used AI technologies to support collections in the multi-billion dollar medical industry in the United States. The proposed acquisition is consistent with our goal to develop and acquire strategic artificial intelligence assets that will be used, among other things, to streamline operations for greater efficiencies and lower costs with additional development resources, but also to develop artificial intelligence technologies in-house with our team of AI experts.”
The Proposed Transaction
Assuming the Proposed Transaction (the “Closing”) is completed in a manner substantially consistent with the terms set forth in the Letter of Intent, GenAI expects to acquire all securities of Global AI Billing in exchange for an aggregate of 7,500,000 GenAI Shares at a consideration of $0.72 per share and the assumption of $1.25 million of Global AI Billing’s existing debt, of which $500,000 is expected to be converted into a convertible debenture of GenAI upon closing (the “Convertible Debenture”) ) to be restructured.
The convertible debenture is expected to bear interest at 5% per annum and is convertible into GenAI shares at an exercise price of $0.72 (the “Conversion Price”). Subject to applicable securities laws and the policies of the CSE, in the event that any financing is closed by GenAI within 6 months of closing and the purchase price of securities in such financing is less than the conversion price, the conversion price will be reduced from such purchase price. The debenture has a term of 12 months and is secured by Global AI Billing’s ownership interests in Remitz.
