DigiMax Launches ESG AI Division Invests Into Green Energy Solutions Company MADA Analytics
DIGIMAX GLOBAL INC. is excited to announce it is launching an ESG Solutions Division within the Company. This Division will concentrate on using Artificial Intelligence and Predictive Analytics to close multiple gaps in the ESG (Environmental, Social and Governance) investment space that will help investors make better investment decisions and also help developers lower their cost of capital.
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DigiMax has identified opportunities to immediately provide these solutions to:
- Green energy development and operations;
- Tracking and predicting carbon credit arbitrage and trading opportunities around the globe; and
- Monitoring and evaluating ESG opportunities and trends on behalf of large investors to analyze appropriate investment opportunities.
As a first step in launching this new Division, DigiMax is investing US $250,000 into MADA Analytics (“MADA”) by way of an unsecured, convertible note (the “Note“). The Note provides for interest on the principal amount at the rate of 5% per annum and is convertible into common shares of MADA at a price per share equal to US$5 million divided by the total number of outstanding common shares immediately prior to maturity.
DigiMax is also acquiring the right for up to one year, pursuant to an option agreement with MADA and its shareholders (the “Option Agreement“), to acquire 100% ownership of the outstanding shares of MADA. The Option Agreement specifies certain operational milestones to be achieved by MADA prior to the exercise of the purchase option (the “Milestones“). The Milestones are: i) MADA raising a minimum of US$750,000 pursuant to one or more financings (not including the current DigiMax investment); and ii) MADA entering into customer contracts to generate minimum revenues of €1 million during the 2-year term of the contracts, both of which must occur within six (6) months of the Digimax investment.
The purchase price (the “Purchase Price“) under the Option Agreement shall be either: i) an enterprise value of $5 million once the Milestones are achieved; or ii) otherwise, not less than 80% of the valuation reached by an independent valuator or valuators selected by MADA and the Company. It is anticipated that consideration for the purchase will be comprised of approximately 25% cash and the balance in common shares issued by the company priced at the time the purchase is to be completed.
A Share Purchase Agreement is intended to be completed and attached to the Option Agreement within 45 days and shall contain customary terms and provisions, including, completion of due diligence and the receipt of all necessary third party and Exchange approvals. While the parties are equally motivated to see the Option Agreement exercised as quickly as possible, there can be no absolute assurance that the MADA acquisition will be completed exactly as described, or at all.
MADA was created in 2018 in order to provide a smoother way for renewable energy projects to get funded faster and at a lower cost of capital than ever before available. MADA accomplishes this through its MADA Energy Processing Solution or “MEPS.”
MEPS is a unique AI engine (integrated via API) enabling existing and proposed renewable energy products to predict and prove:
- stable and predictable cash flows
- data-driven performance insurance for project finance
- identifying the most cost-effective financing solutions
- optimization of storage systems, financial models, and enhanced project finance returns for investors
MEPS can be licensed for use by project developers, project finance insurance companies, and engineering companies to assess existing and proposed projects and to determine optimal targeting of multiples of project variables.
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MEPS has already formed partnership alliances with several leading global industry participants, including:
- RINA Engineering
- Schneider Electric
- Barclays Bank
- Milliman, global insurance advisors
- Morgan Stanley Impact Fund
- Artesian Venture Partners
- BRINC Investments
The first MADA product offering is MARICube which MADA and RINA have jointly developed. MARICube is a comprehensive, AI-driven project analysis solution that combines weather, geographical, political, and financial variables to improve projects. New renewable energy projects are expensive to finance due to the high level of uncertainty of final output. MARICube drastically lowers the level of uncertainty, making projects less expensive to finance, and therefore providing higher returns to investors and the local communities served by these projects. MARICube also helps existing projects optimize dozens of operating variables to substantially lower operating costs and maximize output.
MADA has generated hundreds of thousands of dollars in initial revenue from its software product solution and services to date. This number is poised to grow significantly as enhanced AI is added to MEPS. DigiMax, with its existing AI engine with team and infrastructure to support it, provides a perfect complement to MADA. Together, the two companies will substantially accelerate the MADA product offering.
“We believe that MADA is a perfect partner for DigiMax as we can provide the AI expertise that they require to take their already amazing product offering to the next level,” says DigiMax CEO Chris Carl. “DigiMax sees this as a substantial recurring revenue business that provides optimization and cost-saving solution to EVERY renewable energy project on the planet in an industry that consists of several $trillion of installed projects globally and $300-500 billion of new projects being funded annually. If MARICube can provide even a 5% funding cost reduction or a 2% operating cost reduction to these projects, the value delivered to industry participants is enormous.”
“We are excited to partner with DigiMax to help the MADA product solution become a leading optimization tool in the industry, focused on maximizing profits for renewable energy by de-risking projects with performance insurance, optimizing energy management, and quantifying CO2 reduction from renewable energy supplied,” says MADA CEO Daniel Gimpel. “The engineering and project finance skillsets inside of DigiMax can help both our companies become a leading global brand name for both developers and investors to assist in making their renewable energy projects the best that they can be. Together with our other global partners, MADA Analytics can bring its solutions to every continent on the globe”
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