Crowd Media to raise $2.1m to advance AI-based Talking Head technology and commercialisation

Crowd Media (ASX: CM8) will raise $2.1 million to further develop its flagship artificial intelligence-based Talking Head platform as commercialisation activity ramps up this year.

Funds raised will also be used for sales and marketing and working capital expenses.

Crowd has received binding commitments to raise the $2.1 million, with company directors expected to take up $300,000 of that placement (subject to shareholder approval).

Via two tranches, the company is issuing 70 million new shares at $0.03 each, with a one-for-one attaching option that is exercisable at $0.06 within 24 months of this offer.

Crowd noted the $0.03 offer price represents a 10.18% discount to its 15-day volume weighted average price.

EverBlu was the lead manager of the placement in return for 42.5 million broker options exercisable within 24 months at $0.06.

Talking Head platform

Crowd’s Talking Head platform is based on its conversational AI technology and produces computer-generated digital avatars.

In readiness for the phased deployment of the technology as part of its commercialisation strategy, Crowd has expanded its development team.

“Crowd Media continues to build extraordinary technology and optimise its existing business, pushing new tech commercialisation ahead of schedule and ‘soft-launching’ products to scale the system sensibly,” Crowd Media chief executive officer Idan Schmorak said.

“The demand and willingness that is coming from third parties and potential customers to participate in commercialising the Talking Head technology strengthens our core vision and confirms that we are on the right track.”

Commercialisation gains pace

The company secured a licencing deal with South African healthcare company PangeaMed for the platform in April.

This was an extension to an existing arrangement , with PangeaMed becoming a paying customer in June last year.

In this latest two-year contract, PangeaMed will offer its patients access to Crowd’s Q&A Talking Head platform to provide immediate and reliable medical information both before and after medical treatment.

PangeaMed will pay Crowd a $32,000 fee for access the platform in the first year, with additional chatbots and services attracting further fees of a minimum $332,860.

Commercialisation of the technology has ramped up with Crowd announcing earlier this month it had secured a further two agreements.

Israeli data tech company SourceFlare will blend Crowd’s technology into its own marketing platform to optimise customer acquisition and lead generation.

SourceFlare will pay Crowd about $7,100 a month for access to the platform, along with ongoing services and support.

Creative studio Impssbl will also access Crowd’s technology for a series of interactive NFTs.

Impssbl’s NFTs are integrated with AI to tell stories through Web3 mediums.

Crowd is allowing Impssbl access to its Talking Head technology to develop a “bridge” to convert an AI-generated digital avatar into an NFT artwork.