LZGI International, dba FatBrain AI ($LZGI) and Genius Group Agree to Merge into Growth Platform to Accelerate the Exponential Economy of Tomorrow
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Insights
The merger between FatBrain AI and Genius Group represents a significant consolidation within the edtech and AI sectors, potentially altering the competitive landscape. The combined entity's projected $80 million in gross revenue for 2023 indicates a substantial growth trajectory, which may attract investor interest. The emphasis on a diversified revenue model catering to students, entrepreneurs, businesses and governments (B2S, B2C, B2B, B2G) suggests a strategic approach to capture a wide market share across various customer segments.
From a market perspective, the integration of AI-driven learning libraries, personalized gamified education and SAAS solutions for peer intelligence indicates a move towards a more data-driven and customized learning experience. This could position the merged entity as an innovator in the space, potentially creating a new benchmark for competitors. The focus on future-focused skills and AI education aligns with global trends towards digital transformation and workforce upskilling, which are critical factors for long-term business sustainability.
Analyzing the financial implications of the merger, the doubling of year-on-year gross revenue is a strong indicator of both companies' performance and the market demand for AI and edtech solutions. Investors will closely monitor the combined entity's ability to leverage economies of scale and cross-sell opportunities. The anticipated pro forma revenues and profitability growth could reflect positively on share price performance, provided the merger synergies are realized effectively.
Furthermore, the merger's approval by both boards and the impending NYSE approval process will be critical milestones for the transaction. Shareholder sentiment and market reaction to these developments will be key indicators of the merger's perceived value. The involvement of seasoned executives like Peter B. Ritz and Michael T. Moe, with their track records in successful tech ventures, may instill confidence in the strategic direction of the merged entity.
The merger's focus on creating an end-to-end AI Education and Acceleration ecosystem addresses a growing demand for AI proficiency within the workforce. The approach to offer tailored educational pathways for different demographics – from students to government officials – reflects an understanding of the varied learning needs and potential for AI application in different sectors.
The concept of a 'Genius Metaversity' and personalized, gamified learning experiences represents an innovative leap in the edtech space, potentially reshaping how educational content is delivered and consumed. The partnership's potential to drive an exponential growth cycle in AI edtech could suggest a new era of education technology, with implications for how educational institutions and businesses approach skill development and lifelong learning.
The to be combined businesses are preliminarily estimated to have achieved approximately
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Peter B. Ritz, co-founder of FatBrain AI said, "We see high demand for a combination of AI education and acceleration, enabling individuals, companies and governments with the AI training and AI solutions to create the exponential ecosystems of tomorrow. The need for upskilled, trained teams across enterprises and governments in the age of AI continues to accelerate, and we're excited to meet this growing, global demand."
Our full end-to-end AI Education and Acceleration ecosystem, has four global revenue drivers focused at B2S (Students), B2C (Entrepreneurs), B2B (Enterprises) and B2G (Governments):
- B2B – For Students: Government and company funded AI camps and accelerators together with a scholarship fund for young students at high school and university level to learn future-focused skills, both virtual and in-person, personalized with their Genie AI. The Genius Curriculum progress through to full undergraduate and masters degree programs integrating with personalized gamified and Genius Metaversity, with AI-driven learning libraries shared across participating students and institutions.
- B2E – For Entrepreneurs: Full suite of upskilling courses in AI, exponential technologies and entrepreneurship, delivered by certified trainers and partners globally, ranging from AI Microschools to three-month in-house accelerators, linked with the Genius Scholarship to connect student apprentices with entrepreneurs and enterprises, and linked to FatBrain AI's SAAS solutions to share peer intelligence, industry trends and leaderboards.
- B2B – For Businesses: Enterprise portal and suite of upskilling courses for companies to upskill their workforce in AI, exponential technologies and entrepreneurship, delivered in-house, in-person and via the GeniusU Edtech platform, giving companies AI-powered insights into their workforce's personalized talent development progress and access to FatBrain AI's SAAS solutions to increase peer intelligence and productivity.
- B2G – For Governments: A full AI education ecosystem providing participating cities, regions and national governments with a full AI-driven, lifelong learning system for future-focused education and upskilling, with direct benefits in increased skills, competitiveness and shared intelligence within the rapidly changing Age of AI and Exponential Technologies.
The merger has been approved by the boards of both companies, a definitive agreement has been signed and the merger will close subject to fulfillment of certain closing conditions, including, but not limited to, shareholder and NYSE approval.
Following the closing of the merger, FatBrain AI's CEO, Peter B. Ritz, and Executive Chair, Michael T. Moe, will join Genius Group's Board. Peter B. Ritz is co-founder of FatBrain AI and earlier Exec Chair of Observable Networks (acquired by Cisco). Michael T. Moe is Founder of GSV, an early investor in edtech companies including Coursera, Chegg, Course Hero, Masterclass, and private investor in companies such as Meta, Twitter, Spotify and Palantir.
About FatBrain AI (LZG International, Inc., OTCMKTS:LZGI)
FatBrain AI provides powerful and easy-to-use AI solutions to empower the enterprise stars of tomorrow to grow, innovate, and drive the majority of the global economy. FatBrain's AI 2.0 technologies and advanced data services transform continuous learning, narrative reasoning, large language models, and cloud and blockchain technologies into auditable, explainable and easy to integrate AI solutions. FatBrain's subscriptions allow all companies to deploy its advanced AI solutions quickly, easily, and securely behind their firewalls or via cloud. FatBrain's global delivery includes 600+ team across design, development centers in the US, UK, India, and Kazakh Republic.
For more information, please visit: https://www.fatbrain.ai
About Genius Group
Genius Group is a leading entrepreneur Edtech and education group, with a mission to disrupt the current education model with a student-centered, life-long learning curriculum that prepares students with the leadership, entrepreneurial and life skills to succeed. Through its learning platform, GeniusU, the Genius Group has a member base of 5.4 million users in 200 countries, ranging from early age to 100.
For more information, please visit https://www.geniusgroup.net/
Forward Looking Statement
This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed with the Securities and Exchange Commission on September 13, 2022. Forward-looking statements include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts provided by management in this release are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, the forecasts are based entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Contact
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SOURCE LZG International, Inc.
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