RealThing, a company behind an artificial intelligence (AI) software platform that assists the visually impaired, has seen its reverse takeover ambitions on the ASX go backwards after the intended listed vehicle failed to secure the necessary funding.
In July the Victoria-based company struck a binding agreement with biotech Hexima (ASX: HXL) to gain a listed footing under the name RealThing AI Limited, which would have seen RealThing founder and director Silvio Salom become its chairman.
Hexima, the shell of a biotech that went bust following unfavourable results for its mould infection treatments, needed to secure a capital raise of $4-7.5 million and gain shareholder approval to consumate the agreement.
Having previously sought extensions for its deadline to meet the necessary conditions that are part of re-compliance rules with the regulator, Hexima finally pulled the plug today.
The Hexima board claimed it was not sufficiently confident that the conditions precedent of shareholder approval and capital raising would be satisfied by the deadline of 16 December, "or within a reasonable period thereafter".
"The board has formed the view that committing funds to complete the process for calling the general meeting to seek the approvals would not be appropriate in those circumstances," the company stated in an ASX announcement.
"Accordingly, after board consideration, the company has given notice of termination of the share sale agreement to RealThing and the vendors in accordance with the provisions of the agreement relating to the conditions precedent."
Hexima claims that under the terms of the agreement no exit or break fees are payable. The listed entity closed the September quarter with a cash balance of just under $2 million after net cash outflows of approximately $227,000 over the three-month period, mostly comprising administration and corporate costs.
The listed company estimates that it has around two years worth of funding available to continue in its current state.
Business News Australia has sought comment from RealThing founder Silvio Salom about the deal's collapse but has not received a response at the time of publication.
Salom established the company in 2006, developing an AI platform called AiSAP (Autonomous Intelligent Software Agent Platform) which currently has early sales in the US and UK.
The company's first product, a software application known as RealSAM, is sold in the USA where RealThing is working with the Library of Congress National Library Service for Blind and Print Disabled (NLS), as well as Veteran Affairs.
In the UK, RealSAM is available via Virgin Media O2, and RealThing has collaborations with organisations supporting visually impaired people including the Royal National Institute for the Blind, Blind Veterans UK, Macular Society, and Torch Trust.
The technology is underpinned by autonomous agents that take advantage of advancements in generative artificial intelligence (AI), and combine this with what is known as a Belief, Desire, Intention (BDI) model of human practical reasoning.
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