TheBrief NOVUS SHARES LEAP 5.5% AFTER IT BUYS BYTEFUSE TO GIVE THE FIRM AN AI BOOST

SHARES in Novus Holdings jumped

5.5% on Friday after it announced it was acquiring Bytefuse with the view that it was strategic to its education business and a good entry point into the broader AI market. The board of directors of

Novus said its subsidiary, Novus Print, had entered into a deal on May 9 with Marblehead Investments, Alphawave Holdings, Etienne Barnard, Lambda AI People, Greg Newman, Ruan van der Merwe, Cobus Louw and Bytefuse to acquire all of the ordinary no par value shares in the capital of Bytefuse. Bytefuse, founded in Stellenbosch, Western Cape, in 2021, develops machine learning and artificial intelligence technology for application in various fields.

The shares closed at R4.60 on Friday. Novus said it was anticipated that the use of AI technology would enhance the company’s ability to be a leader in the education market in South Africa. It would buy 412 ordinary shares, 8 471 767 investor preference shares and 2 336 532 founder preference shares, together with the aggregate of all claims, which Marblehead Investments might have against Bytefuse. It would subscribe for an additional 289 ordinary shares and 30 000 000 investor preference shares for R30 million, resulting in Novus holding 48.58% of the ordinary shares, 78.93% of the investor preference shares and 50.43% of the Founder preference shares in Bytefuse. It had also been granted an option to subscribe for an additional 361 ordinary shares and 20 000 000 investor preference shares for R20m, which, if exercised, would result in Novus holding 58.87% of the ordinary shares and 85.06% of the investor preference shares in Bytefuse. | BR Reporter