AnalytixInsight with International Financial Players, Tech Giants & VC

SmallCaps Investment Research

From the SmallCaps Investment Research team:

The rapid development of new technology solutions for the financial sector (Fintech) has created an entirely different range of advanced options for financial services and transactions that did not even exist just a few years ago. Combined with the emergence of artificial intelligence, so called machine learning, this trend has led to the creation of systems to interpret and analyze data more efficiently. AnalytixInsight Inc. (TSXV: ALY – $0.38 & OTC: ATIXF – $0.28 & Frankfurt: 1JX – €0.23) has created a suite of services within the Fintech sector that has positioned the Company at the leading edge of product innovation.

Collaboration Opportunity with Sector Leaders in New Partnership

This week, AnalytixInsight announced an important new alliance as it has become a member of “The Floor”, an innovative platform providing market analysis and Fintech services that is breaking new ground in the modern, interconnected financial universe.

Founded in collaboration with four of the world’s largest banks: HSBC, Santander, RBS and Intesa SanPaolo, The Floor is a community of online partners that provides a suite of financial services including artificial intelligence, blockchain, innovative payment solutions, and market trading access. The Floor is based in the City of Tel Aviv, Israel, which has gained prominence as one of the leading Fintech centers worldwide with more than 500 active Fintech startups. In essence, The Floor functions as a gateway providing access to Fintech services and accelerating the implementation of new technology developed by the community of service providers.

The inclusion of AnalytixInsight as a member of The Floor represents a strategic opportunity to interact with other Fintech sector leaders and showcase the offerings and expertise of the Company within a framework that is itself revolutionizing the financial universe. AnalytixInsight is among the elite group of members that are shaping this technological innovation with the capability to offer machine learning and real time analysis of news and market action.

The Company has already established a presence in Tel Aviv with data modelling experts in place that may now collaborate with other peer companies and expand on the core capabilities along with the development of new technologies.

AnalytixInsight has granted a series of stock options to The Floor as part of this arrangement, subject to the approval of the TSX Venture Exchange.

Market Valuation Comparison Suggests Strong Upside Potential for AnalytixInsight Shareholders

Earlier this month, a transaction was reported by an unrelated company in the Artificial Intelligence (AI) sector that has positive implications for shareholders of AnalytixInsight. Namaste Technologies Inc. acquired Findify AB, a Swedish corporation involved in AI powered e-commerce solutions.

The purchase price of US$12 million for this transaction established a comparative price point for the sector overall. Knowing that Findify was launched in 2014, and achieved revenues of $503,170 in 2017, the emerging growth story was valued at a roughly 24 times revenues in the transaction with Namaste Technologies.

While it is difficult to find apples-to-apples comparisons in this diverse and evolving sector, the similarities between AnalytixInsight and Findify AB are worth noting. Given that AnalytixInsight is also a technology developer involved in AI with a high growth bias, shareholders may be encouraged that its 2017 revenue reported at $4.5 million is many times higher than that of Findify AB. In addition, AnalytixInsight is also leveraged to 49% ownership of MarketWall, which itself generated revenues of $4.2 million in addition to the $4.5 million reported by AnalytixInsight. The Company has stated its expectation that the MarketWall business unit shall be spun off into a separate listing.

With its much higher revenue, the estimated market capitalization for MarketWall as a newly listed company may then be projected at a much higher level than the $12 million takeover price paid in the acquisition deal for Findify AB.

Note that it’s not the Namaste/Findify transaction alone that gives an indication of the valuations being used in the current AI market. Just two days ago, Robinhood, a company that also offers a free stock trading app, raised $363 million in a new investment round valuing the company at $5.6 billion, making it the second most valuable private fintech startup in the U.S. after Stripe.

In the past year, the number of Robinhood brokerage accounts has doubled to more than 4 million, surpassing E*Trade, which had 3.7 million according to its most recently monthly disclosure. Although those are impressive numbers, it’s important to know that AnalytixInsight’s Marketwall stock trading app will soon be rolled out to Intesa Sanpaolo’s 8 million stock trading clients. Double the number of Robinhood accounts!

In another part of the AI market, British start-up BenevolentAI raised $115 million last month, lifting its valuation to $2 billion. The London-based firm, which is focused on the pharmaceutical industry, said the latest round of funding will help it scale drug development and its AI platform. At BenevolentAI the AI technology is used to decipher the molecular process of disease and match drug treatments to the most applicable patients.

By reviewing the three transaction metrics above from deals involving peer group companies, the inferred comparisons certainly suggest that AnalytixInsight should be rewarded a much higher market valuation than its current $27 million market cap.


As the pace of technological innovation accelerates, the financial sector is adapting to embrace new services that are introduced. Proprietary technological products continue to attract new client companies and this has led to rapid growth opportunities for AnalytixInsight. The opportunity for AnalytixInsight to participate among global leaders as part of The Floor is therefore both an endorsement of its business model, as well as a strategic alliance that may position AnalytixInsight to generate faster growth in the future.

Thanks to the collaboration with other innovative companies on the forefront of technology breakthroughs, AnalytixInsight is better positioned to attract new clients. As the process advances, the strongest companies are more likely to leverage this technology advantage to capture market share and maintain high growth rates. This will build shareholder value and perhaps lead to merger and acquisition activity.

The recently announced transaction involving Namaste Technologies and Findify AB has provided a measure of price comparison of market value. Shareholders of the Company should gain confidence that this stock is worth a multiple of the current market value as the advantages of this new technology continue to provide revenue growth. Recommendation: BUY.

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