$40 Million Transaction: AIBiotics Signs Letter of Intent to Acquire Music AI Innovator DigiTrax Entertainment Including Seven Patents and $9 Million Music Catalog
AIBotics and DigiTrax Entertainment aim to redefine music creation and experience using Artificial Intelligence based algorithms trained in music theory, tapping into the $2.9 billion Global AI in Music market
MIAMI, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Mycotopia Therapies Inc., dba AIBotics (OTC: TPIA) and a wholly owned subsidiary of Ehave (OTC: EHVVF), announced today that it has signed a letter of intent (LOI) to acquire 100% of the capital stock of DigiTrax Entertainment Inc. (DigiTrax), an AI-driven leader in innovative music technology solutions in a $40 million transaction that includes seven U.S. patents in music AI, a $9 million music catalog, and licensing agreements with leading publishers. DigiTrax last funding round was at a valuation of $32 million.
DigiTrax is a music technology company that is utilizing its cutting-edge AI solutions to revolutionize the music industry by amplifying creativity and innovation. Its platform empowers artists, music publishers, and labels to unlock new value from existing content while pioneering AI-driven music experiences. As part of the NVIDIA Inception and Intel AI Partner Programs, DigiTrax is merging technology with artistry and reshaping how music is created, experienced, and shared.
The proposed acquisition, which is subject to the completion of definitive agreements and customary due diligence, is expected to position DigiTrax as a subsidiary of AIBiotics, thus expanding the Company's AI portfolio and market presence. Under the terms outlined in the LOI, DigiTrax shareholders will exchange their equity interests for a combination of newly designated preferred stock, common stock, and cash consideration from AIBiotics.
DigiTrax CEO Joseph Vangieri will retain his CEO position in DigiTrax and join the board of directors of AIBiotics as part of the transaction. The LOI sets a target closing date of February 28, 2025, contingent upon certain conditions, including delivering audited financial statements and resolving existing liabilities. Mycotopia Therapies intends to provide bridge financing to DigiTrax during the due diligence period to facilitate operational and audit requirements.
Ben Kaplan, CEO of AIBotics, stated, "The next evolution of generative AI will come from industry leaders collaborating to deliver real value to their customers. This Letter of Intent with DigiTrax is a pivotal step in our strategy to develop AI solutions that move beyond traditional machine learning, driving innovation, efficiency, and productivity."
DigiTrax Entertainment
DigiTrax is revolutionizing music production by enhancing both quality and efficiency through its patented AI Plugin. By harnessing the power of artificial intelligence and machine learning, DigiTrax is redefining how music is created, experienced, and interacted with. With seven U.S. patents in music AI, a $9 million music catalog, and partnerships with leading publishers, DigiTrax is poised for substantial growth. In preparation for a significant transaction in 2025 aimed at accelerating innovation and market expansion.
DigiTrax Entertainment: Driving Innovation Across Three Divisions
DigiTrax Entertainment is a leading innovator in the music industry, with three distinct operating divisions driving growth and pushing the boundaries of music creation and experience.
1. Artificial Intelligence Innovation: DigiTrax is at the forefront of AI-powered music technology. The company researches, develops, and commercializes cutting-edge AI products, including the KR38R Pro Plugin and KR38R VOICE (VOCHIE). The KR38R Pro Plugin is 100% complete, while the KR38R MixPack Marketplace is currently under development. KR38R VOICE (VOCHIE), which is 70% complete, requires additional investment to finalize its AI modeling and singing scoring features. Both projects leverage DigiTrax's patented AI technology to redefine music creation and experience.
Built on seven years of innovation and seven patents, the KR38R platform utilizes evolutionary algorithms trained on music theory, enabling artists, labels, and consumers to generate new value from existing and original content. This includes creating music inspired by specific artist motifs. The KR38R platform seamlessly integrates with major digital audio workstations like Pro Tools and Ableton, offering tools like MixPacks, StudioPacks, and StylePacks. It empowers creators across genres including Hip-Hop, EDM, Pop, and Country, and has been adopted by platinum artists and major labels. The platform is expanding through collaborations and partnerships with independent artists, making music creation more accessible and innovative.
2. Karaoke Interactive Digital Media Platform: This division encompasses DigiTrax's interactive digital media platform, which distributes short-form video content such as karaoke music videos, and DigiTrax's Music Distribution Services. DigiTrax generates revenue through subscription services like KaraokeOnDemand.com and advertising partnerships. Investors and interested parties are invited to download a free seven-day trial at KaraokeOnDemand.com.
Karaoke On Demand provides an extensive library of karaoke songs available for streaming anytime, anywhere. Catering to music enthusiasts of all ages, it offers high-quality tracks across various genres, delivering professional-grade karaoke experiences accessible on Roku, Google Play, Apple, and Amazon platforms.
3. Music Catalog Services and In-House Recording Facilities: This division includes Soknox Studios, DigiTrax's sound-alike music catalog, and recording facilities. DigiTrax's Music Production and Licensing Services are primarily involved in obtaining publisher licenses and selling master recording rights associated with the sound-alike catalog.
Joseph Vangieri, CEO of DigiTrax Entertainment, said, "DigiTrax is transforming the music industry by empowering content creators with AI-generated music that's not just innovative but also publisher and record label licensed and authorized. Our patented technology ensures that you can create and distribute your content without fear of infringement, giving you the freedom to express your creativity without limitations." Mr. Vangieri continued, "We believe the future of AI in music lies in collaboration, where groundbreaking technologies empower creators to reach new heights."
Ben Kaplan, CEO of AIBiotics, added, "The music industry is undergoing a technological revolution, with AI transforming how music is created, produced, and shared. From independent artists to major studios, AI is unlocking new creative possibilities and reshaping the business landscape. DigiTrax's capabilities open up a world of opportunities for AIBiotics and its shareholders to benefit from this transformation."
About AIBiotics
AIBotics leverages AI and robotics to develop innovative solutions that address real-world challenges. Its flagship products include the Phill Robot™, an AI-powered massage robot that delivers spa-quality care with IoT integration, and Milkyway, a smart refrigerator that simplifies breast milk storage with automated organization and app connectivity.
DigiTrax AI is a music technology company that uses artificial intelligence to develop new ways of creating and experiencing music. The Company has developed a patented AI process that leverages evolutionary algorithms trained on music theory as the key innovation of the KR38R platform. The platform leverages AI for new music creation and to help artists and music labels unlock additional value from existing content. DigiTrax AI is currently participating in the NVIDIA Inception and Intel AI Partner Programs. For more information on DigiTrax AI, please visit https://digitrax.ai/.
Forward-Looking Statement Disclaimer
This press release contains “forward-looking statements” within the meaning of applicable securities legislation. Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Forward-looking statements are based on certain assumptions, opinions and estimates of management and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements: (i) the initiation, timing, progress and results of the Company’s research, manufacturing and other development efforts; (ii) the Company’s ability to advance its products to successfully complete development and commercialization; (iii) the manufacturing, development, commercialization, and market acceptance of the Company’s products; (iv) the lack of sufficient funding to finance the product development and business operations; (v) competitive companies and technologies within the Company’s industry and introduction of competing products; (vi) the Company’s ability to establish and maintain corporate collaborations; (vii) loss of key management personnel; (viii) the scope of protection the Company is able to establish and maintain for intellectual property rights covering its products and its ability to operate its business without infringing the intellectual property rights of others; (ix) potential failure to comply with applicable health information privacy and security laws and other state and federal privacy and security laws; and (x) the difficulty of predicting actions of the U.S. Food and Drug Administration and its regulations. All forward-looking statements included in this press release are made only as of the date of this press release. The Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise, except as required by applicable law.
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