Artificial intelligence (AI) and digital wallet provider firm Fobi AI Inc. (FOBI:TSX; FOBIF:OTCMKTS) announced a non-brokered private placement of up to 15 million units of the company at a price per unit of US$0.10 for gross proceeds of up to US$1.5 million.
"The company intends to use the net proceeds of the offering for sales and marketing, product expansion and integration, market expansion and general working capital and corporate expenses," the company noted in a release.
The Canadian tech firm sells software as a service (SaaS), reselling, referring, and licensing its technology to entities around the world in various industries. These include retail and consumer packaged goods, insurance, sports and entertainment, and casino gaming.
Some of its big-name customers and partners are NASDAQ, NCAA, Shopify, MGM Resorts International, and BevWorks.
Last month, Fobi AI introduced a new integrated event registration and digital ticketing platform designed to expand revenue opportunities and enhance user experiences by integrating ticket purchase transaction fees into its Software-as-a-Service (SaaS) model.
The platform consolidates event registration, ticket purchases, memberships, and credentials into a unified web or mobile interface, providing a streamlined, paperless, and secure method for managing event-related needs directly from Apple or Google wallets.
Additionally, Fobi has integrated a pass bundling feature, allowing the bundling of event tickets with additional purchases such as merchandise and food, enhancing convenience and potentially increasing revenue.
"This new platform promises to greatly expedite and simplify event registration and ticketing both for event organizers and attendees and clearly, if it really catches on, which seems very possible, it could be a BIG earner for the company, especially as Fobi is introducing an innovative aspect to the event registration and purchase experience with the integration of pass bundling," wrote Technical Analyst Clive Maund on June 4.*
Maund rated the stock an Immediate Strong Buy.
The Catalyst: Platform Promises New Revenue Streams
The company has said its new integrated event registration and digital ticketing platform promises to drive new revenue streams and enhance user experiences.
"This product release is a testament to Fobi AI's dedication to addressing client needs and enhancing user experiences through innovative technology," Chief Executive Officer Rob Anson said. He emphasized the platform's role in "enhancing shareholder value by driving new revenue streams," highlighting the integration of ticket purchase transaction fees into Fobi's SaaS model.
Technical Analyst Clive Maund rated the stock an Immediate Strong Buy.
Fobi said the platform addresses the pain points of event organization by providing a unified solution for event registration, ticketing purchases, memberships, and credentials, all accessible via a streamlined web or mobile interface. This integration facilitates a smoother, hassle-free experience for attendees, who can manage all event-related needs from a secure and convenient location, eliminating the need for physical tickets and reducing paper waste.
Additionally, the new feature of pass bundling allows attendees to combine their event tickets with other purchases, such as merchandise, food, and beverages, potentially increasing overall sales.
This feature "unlocks new opportunities for generating additional revenue for Fobi AI," as it simplifies the consumer experience while promoting further sales within the same platform.
Anson's comments underscore the platform's potential to redefine the event registration and ticketing landscape, making every event more seamless and efficient while setting new standards in the event industry.
'An Excellent Entry Point for Buyers'
Fobi AI owns six global brands offering industry solutions via AI, data intelligence, and mobile wallet technology, according to Fobi's investor presentation.
Passcreator is a SaaS solution for mobile marketing compatible with wallet apps; Passworks is for real-time engagement with consumers using mobile content based on their location; and PassWallet is a digital wallet app for Android.
Worldwide, Fobi has issued more than 100,000,000 wallet passes, the company said, and its mobile-first solutions are used in at least 150 countries.
"Fobi AI is still languishing at a cyclical low that is about coincident with the major lows of 2020," Maund wrote of the stock, which hasn't moved much since he wrote about it last month.
"What this means is that, given the very positive fundamental and technical aspects that we have just considered, it is at an excellent entry point for buyers here," Maund wrote.
Market Experiencing Growth Spurt
The global AI market is experiencing a growth spurt that is expected to continue through 2030 at the least, according to Grand View Research. By the end of this decade, the market will reach US$1.81 trillion in value, up from US$196.63 billion (US$196.63B) in 2023.
Streetwise Ownership Overview*This reflects a compound annual growth rate during this period of 38.1%. In 2022 alone, the value of the market increased by US$60B.
"The essential fact accelerating the rate of innovation in AI is accessibility to historical data sets," noted the report.
As for the global mobile wallet sector, Precedence Research forecasts it will expand at a 27.2% CAGR by 2033, in large part due to the increasing adoption of contactless payments. Estimates put the sector value at US$88.36B by then, having risen from US$8B last year.
Ownership and Share Structure
According to the company, about 20% is held by insiders, including the CEO Anson, who has 4.35% personally and 15.45% through Fobisuite Technologies Inc. The rest is with retail.
Fobi's market cap is CA$15.42 million, and its 52-week trading range is CA$0.07−0.45 per share.
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Important Disclosures:
- Fobi AI Inc. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fobi AI Inc.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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* Disclosure for the quote from the Clive Maund article published on June 4
- For the quoted article (published on May 27), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$1,500 in addition to the monthly consulting fee.
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed
Clivemaund.com Disclosures
The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.
