SINGAPORE - Genius Group Limited (NYSE American: GNS), an education company specializing in AI-powered learning solutions, announced that its CEO, Roger Hamilton, has acquired 500,000 ordinary shares of the company. The transaction, which took place today, was based on a share price of $0.91, reflecting a 5% premium over the closing price on the last trading day before the notice of intent to purchase was given on September 24, 2024.
This latest purchase by Mr. Hamilton is part of a series of personal investments he has made in Genius Group over the past year. These investments include an interest-free loan of over $2.1 million in late 2023, a $1.0 million equity purchase in January 2024, and an additional interest-free loan of $330,000 in July 2024.
The board approved the share purchase on August 9, 2024, and the transaction was executed in a combination of cash and conversion of debt owed by the company to Mr. Hamilton. The purchase was made in compliance with Section 4(a)(2) of the Securities Act of 1933, exempting it from registration.
Genius Group serves a global user base of 5.4 million across more than 100 countries, offering a range of AI-powered educational tools and services. The company operates under the Genius City model, which integrates AI training, tools, and talent to provide personalized learning and professional development opportunities.
This press release contains forward-looking statements about the company's future performance, which are subject to risks and uncertainties. Investors are advised to consider these statements in conjunction with the company's financial filings and risk factors outlined therein.
The information in this article is based on a press release statement from Genius Group Limited.
In other recent news, Genius Group Limited has made considerable progress in its operations and financial strategy. The company reported a 27% increase in revenue to $23.1 million in 2023, aiming for $105 million in revenue by 2024. The AI-focused education provider announced a reverse stock split at a 1-for-10 ratio, a strategic move to comply with the NYSE American's minimum price standards for continued listing.
CEO Roger James Hamilton received approval for the purchase of up to 10 million shares, reinforcing confidence in the company's trajectory. Genius Group also completed Phase 1 of a $22 million contract with the government of Kazakhstan to develop a Sovereign AI. In addition, the company secured approximately $3.8 million from the exercise of Series 2024-C warrants, managed by H.C. Wainwright & Co., strengthening its financial position.
The firm added Mr. Riaz Shah, a respected figure in the education sector, to its Board of Directors. In other developments, Genius Group's AI technology system was implemented by the Asset Recovery Committee of the Prosecutor General’s Office of the Republic of Kazakhstan, aiding in the identification and recovery of illegally obtained assets. The company also announced the cancellation of its Extraordinary General Meeting after reevaluating the Proposed Share Consolidation plan. These are the recent developments for Genius Group.
InvestingPro Insights
Genius Group's recent share acquisition by CEO Roger Hamilton comes at a time when the company's financial metrics paint a complex picture. According to InvestingPro data, Genius Group's market capitalization stands at a modest $15.94 million, reflecting its current position in the education technology sector.
Despite the CEO's vote of confidence through share purchases, InvestingPro Tips highlight some challenges facing the company. One tip notes that Genius Group is "quickly burning through cash," which aligns with the need for Hamilton's recent investments and loans to the company. This cash burn rate could be a concern for investors, especially given another tip indicating that "short term obligations exceed liquid assets."
On a positive note, InvestingPro data shows that Genius Group's revenue growth is strong, with a 26.76% increase over the last twelve months as of Q4 2023, and an even more impressive 49.12% growth in quarterly revenue. This growth trajectory supports the InvestingPro Tip that "analysts anticipate sales growth in the current year."
However, the company's profitability remains a challenge. With an operating income margin of -89.45% and a negative EBITDA of -$18.36 million, Genius Group is "not profitable over the last twelve months," as pointed out by another InvestingPro Tip. This financial situation underscores the importance of Hamilton's continued investment in the company.
Investors should note that InvestingPro offers 13 additional tips for Genius Group, providing a more comprehensive analysis of the company's financial health and market position. These insights can be particularly valuable given the stock's high volatility, as mentioned in the InvestingPro Tips.
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