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Railtown AI Technologies Inc
Symbol RAIL
Shares Issued 138,908,497
Close 2025-02-10 C$ 0.59
Market Cap C$ 81,956,013
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Railtown AI signs MOU to acquire AI Partnerships

2025-02-11 09:24 ET - News Release

Mr. Cory Brandolini reports

RAILTOWN AI TECHNOLOGIES ANNOUNCES MOU TO ACQUIRE AI PARTNERSHIPS CORP

Railtown AI Technologies Inc. has executed an MOU (memorandum of understanding) for the acquisition of AI Partnerships Corp. (AIP), a Toronto-based company that has established an affiliate network of over 160 (primarily North American) AI (artificial intelligence) SaaS (software-as-a-service) companies that provide AI-based vertical market solutions and AI development and management tools. The acquisition will create a dynamic organization that drives substantial revenue growth and scales enterprise AI solutions worldwide.

AIP's affiliate network operates in 13 countries and delivers AI-based solutions to a diverse client base across multiple industries, including fintech (financial technology), health care, manufacturing and supply chain management, as well as sector-agnostic applications and AI development and management tools.

The combination of Railtown AI and AIP is expected to provide both organizations with an opportunity to leverage Railtown AI's Conductr product as a platform of choice for AI application development by AIP's current and future affiliates and their end-users.

One of the fundamental objectives in the establishment of AIP's affiliate network was to allow AIP to identify and acquire the best affiliates as part of a broader strategic roll-up strategy. The transaction is expected to provide the resulting entity the benefit of a public company structure with access to capital markets as it executes its affiliate acquisition strategy. AIP's established affiliate network provides a significant opportunity to grow recurring revenue streams through Affiliate acquisitions, which could be enhanced by deploying Railtown AI's proprietary technologies across the affiliate network and its customers.

Key drivers of revenue growth include:

  • Affiliate acquisitions: The company plans to acquire select high-performing affiliates and, as a result of combining their product offerings, will provide a rich suite of vertical market AI-based applications and development tools in order to meet the needs of enterprise clients.
  • Platform integration: Railtown AI's Conductr platform could streamline AI development for affiliates and their enterprise clients, increasing both adoption and productivity.
  • Expanded partnerships: With relationships already in place with major technology partners, including Mila, Amii, Microsoft, Nvidia, AMD and UBC, the company will continue to leverage these partnerships to accelerate enterprise sales and product innovation.
  • Recurring enterprise revenue: The integration of AI-based vertical market applications, along with AI development and management tools and services across the affiliate network, is anticipated to drive strong recurring revenue growth from long-term enterprise contracts.

"This acquisition represents a transformative moment for both Railtown AI and AI Partnerships Corp. By combining our Conductr platform with AIP's extensive affiliate network and enterprise partnerships, we are creating a powerhouse that will drive significant revenue growth and deliver innovative AI solutions to businesses worldwide. The opportunities ahead are immense -- we're poised to expand our reach, scale enterprise sales and accelerate innovation across industries. Together, we'll shape the future of AI in ways that unlock long-term value for our shareholders, customers and partners," said Cory Brandolini, chief executive officer of Railtown AI Technologies.

"From its inception, AIP set out to assemble the largest network of AI solutions organizations that provide a diverse package of AI solutions that meet the needs of enterprises in industry sectors that realize significant ROI [return on investment] from the adoption of AI-based application solutions. We found Railtown's Conductr had broad deployment relevance across the entirety of our network. With the combination of Railtown and AIP, we are excited to actualize our public market vision as we seek to commence with an aggressive targeted affiliate acquisition mandate upon the conclusion of this exciting transaction," stated Dr. Tom Corr, chief executive officer of AI Partnerships.

To facilitate the acquisition transaction, Canaccord Genuity Corp. has been engaged as exclusive financial adviser and lead agent to the company in connection with the acquisition transaction and any concurrent financing.

Both companies are working toward finalizing a letter of intent to formalize the acquisition in the coming weeks.

The acquisition is expected to position the company to capitalize on the rapidly expanding demand for AI solutions in key sectors. The ability to provide enterprise clients with a fully integrated suite of AI tools and services -- ranging from SaaS applications to advanced development platforms -- gives the organization a strong competitive advantage in both domestic and international markets.

The leadership teams of Railtown AI and AIP are aligned in their vision to create long-term value through technology innovation and enterprise revenue growth.

About AI Partnerships Corp.

AI Partnerships was formed in 2020 with the goal of establishing a worldwide affiliate network of AI-as-a-service-based companies that are focused on providing AI-based solutions in a select number of sectors. These sectors include health care, manufacturing, supply chain and fintech, as well as sector-agnostic AI development tools and applications. AI Partnerships has established a network of over 160 SaaS-based AI affiliates, primarily headquartered in Canada and the United States, which have offices in 13 countries around the world.

The affiliate network consists primarily of companies that are non-competitive with each other and that work together to cross-sell to one another's clients and to jointly pursue new sales opportunities. By establishing and working with the affiliate network, AI Partnerships has been able to identify the best affiliate candidates to potentially be acquired by AI Partnerships.

About Railtown AI Technologies Inc.

Railtown AI, a Microsoft partner, has developed a cloud-based application general intelligence platform called Conductr. Artificial intelligence and automation that perform tasks and streamline, enhance and accelerate developer productivity engineering (DPE) through speed, quality, automation, and best practices are the cornerstones and foundation of the Conductr platform.

Railtown AI purposely built the Conductr platform to help software companies and software developers save time on redundant tasks, improve productivity, drive down costs and accelerate developer velocity. Railtown's proprietary AI technology, designed to enable its clients to be more productive and profitable, is accessible on Microsoft's Azure Marketplace.

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