iLearningEngines Secures $20 Million Incremental Funding To Help Execute Growth Plans
iLearningEngines (NASDAQ: AILE) has secured an additional $20 million in funding through an amendment to its existing Loan and Security Agreement. This amendment involves East West Bank and Valley National Bank, with the funds aimed at supporting the company’s growth initiatives. The original agreement, dated April 17, 2024, included a $40 million revolving credit facility, which has now been extended by the additional funding. The revolving facility bears interest at the Adjusted Term SOFR rate plus 3.50% per annum. CEO Harish Chidambaran mentioned that the new funding will enhance platform adoption and facilitate strategic transactions.
- Secured an additional $20 million in funding.
- Expanded banking relationships to include Valley National Bank.
- Funding to support growth initiatives and strategic transactions.
- Outstanding loans under the revolving facility bear interest at Adjusted Term SOFR rate plus 3.50%.
Insights
iLearningEngines' announcement of an additional $20 million in funding through a First Amendment to their existing Loan and Security Agreement is a significant event with several implications for investors. The revolving credit facility, now expanded to
From a financial standpoint, the interest rate on the expanded Revolving Facility is noteworthy. The adjusted Term SOFR rate plus 3.50% per annum, subject to a floor of
In the short term, this funding provides immediate capital to support operational expansion and product development. However, the longer-term impact will depend on how effectively the funds are utilized to generate revenue and profit growth. Investors should monitor upcoming quarterly financial statements for indications of how this capital is being deployed.
AI-powered learning and work automation are rapidly growing fields and iLearningEngines operates in a market with substantial potential. The additional funding enhances the company's ability to solidify its position and capitalize on growth opportunities. However, market dynamics and competitive pressures must be closely examined. iLearningEngines must demonstrate its competitive edge through unique value propositions and sustained innovation to justify its increased debt load.
Moreover, the inclusion of Valley National Bank in the syndicate diversifies the company's financial relationships, potentially reducing risk. The investor should consider how this strategic move might influence the company's negotiation power and stability in future financial dealings.
Looking ahead, the company's success will hinge on its ability to drive adoption of its AI platform. Investors should track metrics like user growth, customer retention rates and new client acquisitions to gauge the effectiveness of the company's growth strategy. Additionally, market share gains against competitors will be a critical indicator of future profitability and sustainability.
BETHESDA, Md., July 03, 2024 (GLOBE NEWSWIRE) -- iLearningEngines, Inc. (NASDAQ: AILE) (“iLearningEngines” or “ILE”) a leader in AI-powered learning and work automation, announced today that it has entered into a First Amendment to Loan and Security Agreement (the “Amendment”) with the involved financial institutions (the “Lenders”) and East West Bank, as administrative agent and collateral agent for the Lenders, which amends the existing Loan and Security Agreement, dated April 17, 2024, between iLearningEngines’ wholly owned subsidiary, iLearningEngines Holdings, Inc. (“iLE Holdings”), the Lenders and East West Bank (the “Loan Agreement”). The purpose of the Amendment is to, among other things, secure an incremental
On April 17, 2024, iLE Holdings entered into the Loan Agreement which included a new senior secured revolving credit facility in a principal amount of up to
“We see a tremendous opportunity to increase adoption of the iLearningEngines platform, both through organic growth and, potentially, strategic transaction, and this
“We believe the adoption of AI is one of the most powerful technology trends happening today, and we are pleased to help fund the growth of an AI leader like iLearningEngines,” said Jack Grady, Senior Vice President of East West Bank.
About iLearningEngines
iLearningEngines (Nasdaq: AILE) is a leading Applied AI platform for learning and work automation. iLearningEngines enables Enterprises to rapidly productize and deploy a wide range of AI applications and use cases (AI Engines) at scale.
iLearningEngines is powered by proprietary vertical specific AI models and data with a flexible No Code AI canvas to drive rapid out-of-the-box deployment while offering low latency and high levels of data security and compliance.
Serving over 1,000 enterprise end customers, iLearningEngines is deployed globally into some of the most demanding vertical markets including Healthcare, Education, Insurance, Retail, Energy, Manufacturing and Public Sector to achieve mission critical outcomes.
For more information about iLearningEngines, please visit: www.ilearningengines.com.
Forward-Looking Statements
Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995 with respect to the Business Combination. Forward looking statements generally are accompanied by words such as “believe,” “may,” “will, “estimate,” “continue,” “anticipate,” “intend,” expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” the negative forms of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding iLearningEngines’ growth plans, the adoption of AI, iLearningEngines’ business outlook, including its growth opportunity and position in the industry, and the promise of iLearningEngines’ technology. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the iLearningEngines’ management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions this press release relies on. Many actual events and circumstances are beyond the control of iLearningEngines. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; iLearningEngines’ failure to realize the anticipated benefits of the Business Combination; risks related to the rollout of iLearningEngines’ business and the timing of expected business milestones; iLearningEngines’ dependence on a limited number of customers and partners; iLearningEngines’ ability to obtain sufficient financing to pay its expenses incurred in connection with the closing of the business combination; the ability of iLearningEngines to issue equity or equity-linked securities or obtain debt financing in the future; risks related to iLearningEngines’ need for substantial additional financing to implement its operating plans, which financing it may be unable to obtain, or unable to obtain on acceptable terms; iLearningEngines’ ability to maintain the listing of its securities on Nasdaq or another national securities exchange; the risk that the Business Combination disrupts current plans and operations of iLearningEngines; the effects of competition on iLearningEngines future business and the ability of iLearningEngines to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; risks related to political and macroeconomic uncertainty; the outcome of any legal proceedings that may be instituted against iLearningEngines or any of their respective directors or officers, including litigation related to the Business Combination; the impact of the global COVID-19 pandemic on any of the foregoing risks; and those factors discussed in iLearningEngines’ filings with the Securities and Exchange Commission under the heading “Risk Factors.” If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that iLearningEngines does not presently know, or that iLearningEngines does not currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect iLearningEngines’ expectations, plans, or forecasts of future events and views as of the date of this communication. iLearningEngines anticipate that subsequent events and developments will cause iLearningEngines’ assessments to change. However, while iLearningEngines may elect to update these forward-looking statements at some point in the future, iLearningEngines specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing iLearningEngines’ assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
IR & Press Contacts:
Investor Contact:
Kevin Hunt, ICR Inc.
iLearningEnginesIR@icrinc.com
Press Contact:
Dan Brennan, ICR Inc.
iLearningPR@icrinc.com
FAQ
What recent funding did iLearningEngines (AILE) secure?
When was the additional $20 million in funding drawn by iLearningEngines?
Who are the banking partners involved in iLearningEngines' latest funding?
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How will iLearningEngines utilize the additional $20 million in funding?
