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MSG Sports To Invest $10 Million Xtract One

MSG Sports To Invest $10 Million Xtract One

Madison Square Garden Sports (MSG) has announced it will invest up to CAN$13.4 million (AUD$14.5 million) for a stake in Xtract One Technologies Inc., the artificial intelligence (AI) powered security technology company.

The deal will involve the sale of up to 31.9 million units of Xtract at a price of CAN$0.42 (AUD$0.45) each, with a unit being made up of one share and one share-purchase warrant.

According to Xtract, MSG Sports will make an immediate investment of CAN$8.4 million (AUD$9.09 million), with a subsequent investment of CAN$5 million (AUD$5.41 million) conditional on approval by Xtract’s shareholders and regulators.

If MSG Sports makes the full investment, it would hold roughly 16% of Xtract’s issued and outstanding shares on a non-diluted basis and 28% of on a partially diluted basis.

The use of facial recognition, along with the AI systems developed by Xtract One, reflect the growing use of more technologically advanced security processes at sporting venues to make the experience safer and less intrusive.

Xtract One’s screening technology will be integrated into MSG venues, phasing out more obtrusive methods such as walk-through metal detectors.

However, MSG, which owns the National Basketball Association’s (NBA) New York Knicks and the National Hockey League’s (NHL) New York Rangers, has come under scrutiny for using facial recognition technology to prevent legitimate ticket holders from attending events at its eponymous arena.

These include lawyers involved in active litigation against the company, with up to 90 law firms affected.

MSG Sports is buying the stake for investment purposes and may acquire additional securities or sell some or all of what it holds from time to time.

This announcement comes after Slinger joined forces with award-winning artificial intelligence sports technology company, GAMEFACE.AI. 

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