AI/ML Innovations Inc. (AIML) has successfully closed an oversubscribed private placement, raising $2.17 million to advance its artificial intelligence and machine learning initiatives in the healthcare sector. The financing, which exceeded the company's initial target, reflects strong investor confidence in AIML's strategic direction.
The Vancouver-based company announced on April 15, 2025, that it had completed its non-brokered private placement with total gross proceeds of $2,165,900. The offering, which was initially proposed to raise up to $2 million through 40 million units, was expanded to 43,318,000 units due to high investor demand and with approval from the Canadian Securities Exchange.
Each unit, priced at $0.05, consists of one common share and one warrant. The warrants are exercisable at $0.15 per share until April 15, 2028, providing investors with a three-year window to increase their stake in the company.
Insider Participation Signals Confidence
Notably, the private placement featured significant participation from AIML's leadership team. CEO and Executive Chairman Paul Duffy acquired 4.25 million units through his controlled company, while President Peter Kendall purchased 3 million units through his controlled entity. This insider participation constitutes a "related party transaction" under securities regulations but was exempt from formal valuation requirements as it represented less than 25% of the company's market capitalization.
Paul Duffy expressed appreciation for investor support, stating: "We are extremely grateful for the confidence and support shown by our investors in this oversubscribed financing. Their participation is a strong vote of confidence in our vision and strategic direction. These funds will help accelerate our mission to bring AI and machine learning innovations to the healthcare space and create long-term value for all stakeholders."
Financial Details and Use of Proceeds
In connection with the private placement, AIML paid aggregate finder's fees of $101,815 and issued 1,917,300 finder's warrants with terms matching the investor warrants. All securities issued are subject to a statutory hold period ending August 16, 2025.
The company intends to use the net proceeds for general working capital requirements, supporting its ongoing operations and development initiatives in AI-driven healthcare solutions.
Strategic Focus on AI in Healthcare
AIML has positioned itself at the intersection of artificial intelligence, machine learning, and healthcare innovation. The company has realigned its business operations to capitalize on these emerging technologies, with a particular focus on digital health and wellbeing companies.
Through its wholly-owned subsidiaries—Quantum Sciences Ltd., NeuralCloud Solutions Inc., and AI Rx Inc.—along with its strategic partnership with Health Gauge Inc. (95.2% owned by AIML), the company is developing transformative healthcare management solutions and precision support delivery systems.
Warrant Modifications
In addition to the private placement announcement, AIML disclosed modifications to the terms of approximately 15.2 million existing share purchase warrants and broker warrants issued in June and July 2023. These warrants, which originally had a graduated exercise price structure ranging from $0.10 to $0.50 over five years, will now be exercisable at a fixed price of $0.20 per share, with all other terms remaining unchanged.
Market Position
AIML's shares are traded on multiple exchanges, including the Canadian Securities Exchange (symbol: AIML), the OTCQB Venture Market (symbol: AIMLF), and the Frankfurt Stock Exchange (symbol: 42FB). This multi-exchange presence provides the company with access to diverse investor bases across North America and Europe.
The successful completion of this financing round positions AIML to accelerate its development of AI and machine learning solutions for the healthcare sector, potentially addressing significant unmet needs in healthcare management and delivery.
