Artificial Intelligence

authID Inc. Reports Financial and Operating Results for the Second Quarter Ended June 30, 2022

Published

2 years ago

August 9, 2022

DENVER, Aug. 09, 2022 (GLOBE NEWSWIRE) — authID (Nasdaq: AUID) a leading provider of secure, mobile, biometric identity authentication solutions, today reported financial and operating results for the second quarter and six months ended June 30, 2022.

“This quarter, we gained traction as a noteworthy competitor in the biometric identity marketplace by achieving a perfect score for ISO Level 2 Biometric Presentation Attack Detection and achieving ISO 27001 Certification for Information Security Management Systems,” said Tom Thimot, CEO of authID. “The American Board of Radiology selected authID after a rigorous proof of concept, and we expanded our portfolio of financial services customers. Our focus on enabling companies to defend against password risks and fraudulent account takeovers, in addition to lowering their enterprise support costs are key aspects of our value proposition and the reason we believe we will gain momentum in the months ahead.”

Financial Results for the Three Months and Six Months Ended June 30, 2022
The following highlights comprise results from continuing operations, reflecting the previous announcement to exit the Company’s non-core businesses in South Africa and Colombia. These businesses are now classified in the Company’s financial statements as discontinued operations and assets held for sale.

Total revenue for the three months ended June 30, 2022 was $0.1 million, compared with total revenue of $0.1 million for the three months ended June 30, 2021. For the six months ended June 30, 2022, total revenue was $0.2 million, compared with total revenue for the six months ended June 30, 2021 of $0.3 million. For both the three and six- month periods, Verified^TM software license revenue increased sequentially.
Net loss for the three months ended June 30, 2022 was $6.4 million, compared with $3.0 million a year ago. For the six-month period in 2022, net loss was $11.5 million, compared with $5.4 million for the same period last year.
Net loss per share for the three months ended June 30, 2022 was $0.26, compared with $0.15 for the three months ended June 30, 2021. For the six months ended June 30, 2022, net loss per share was $0.48, compared with $0.27 for the same period last year.
Adjusted EBITDA loss for the three months ended June 30, 2022 was $3.0 million, compared with $1.3 million for the three months ended June 30, 2021. For the six months ended June 30, 2022, Adjusted EBITDA loss was $5.9 million, compared with $2.5 million, for the same period last year.

Refer to Table 1 for reconciliation of loss to Adjusted EBITDA (a non-GAAP measure).

“Despite macroeconomic headwinds that we believe resulted in longer sales cycles than anticipated for Verified Consumer, interest in our Verified Workforce solutions is a bright spot and is growing as organizations accelerate their move to passwordless and Zero Trust authentication,” Thimot added. “Businesses implementing our secure cloud-based biometric identity authentication platform gain the assurance they need that the user behind the device is who they say they are. We expect our continued focus on sales of our workforce cybersecurity products will contribute to our growth and support our target of reaching positive cash flow by the time we enter 2024.”

Highlights for the Second Quarter of 2022 and Subsequent Weeks:

Won the American Board of Radiology, which selected authID to deploy its facial biometric authentication solution following a successful proof-of-concept trial period. authID believes this win highlights the large opportunity to grow market share in the healthcare segment.
Signed several new financial services customers including an international bank, a US credit union and a fintech for health care professionals.
Added a global online media company and several financial services providers, through US channel partners, to help reduce identity fraud in account recovery and digital customer onboarding.
Achieved certification for ISO 27001:2013 for Information Security Management System (ISMS), providing further evidence that authID has met a rigorous framework of security management standards for ensuring the confidentiality, integrity, and availability of its biometric authentication platform.
Achieved a perfect score for International Standards Organization (ISO) 30107-3 Level 1 and 2 standards for Presentation Attack Detection for the company’s Verified™ platform, preventing more than 700 presentation attacks for a 0% failure rate. This successful independent testing demonstrates the additional fraud protection and security authID can provide to its customers.
Named Annie Pham, formerly of Sonic Wall and Broadcom, as CFO, and appointed former CLEAR executive Joe Trelin to authID’s Board of Directors.

Today’s Conference Call and Webcast

The Company will host a webcast and conference call today at 5:30 p.m. EST to discuss the financial results and provide a corporate update.

About authID Inc.
At authID (Nasdaq: AUID), We Are Digital Identity®. authID provides secure, mobile, biometric identity verification software products through Verified®, an easy-to-integrate Identity as a Service (IDaaS) platform. Our suite of self-service biometric identity verification and authentication solutions frictionlessly eliminate passwords through consent-based facial matching. Powered by sophisticated biometric and artificial intelligence technologies, authID aims to strengthen security and trust between businesses and their customers. For more information, go to: www.authid.ai.

Forward-Looking Statements
Information contained in this announcement may include “forward-looking statements.” All statements other than statements of historical facts included herein, including, without limitation, those regarding the future results of operations, cash flow, cash position and financial position, business strategy, plans and objectives of management for future operations of both authID Inc. and its business partners, future service launches with customers, the outcome of pilots and new initiatives and customer pipeline are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding authID’s present and future business strategies, and the environment in which authID expects to operate in the future, which assumptions may or may not be fulfilled in practice. Implementation of some or all of the new services referred to is subject to regulatory or other third-party approvals. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of risk factors, including the risk that implementation, adoption and offering of the service by customers, consumers and others may take longer than anticipated, or may not occur at all; changes in laws, regulations and practices; changes in domestic and international economic and political conditions, the as yet uncertain impact of the war in Ukraine, the Covid-19 pandemic and others. See the Company’s Annual Report on Form 10-K for the Fiscal Year ended December 31, 2021 filed at www.sec.gov and other documents filed with the SEC for other risk factors which investors should consider. These forward-looking statements speak only as to the date of this announcement and cannot be relied upon as a guide to future performance. authID expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any change in events, conditions, or circumstances on which any statement is based.

Investor Relations Contacts:

Grace DeFries authID SVP, Marketing Communications & Investor Relations [email protected]		Ina McGuinness The Bliss Group 805.427.1372

Non-GAAP Financial Information

The Company provides certain supplemental financial measures in this statement that are not calculated in accordance with U.S. generally accepted accounting principles or “GAAP”. Management believes that Adjusted EBITDA, Booked Annual Recurring Revenue (“BARR”) and Annual Recurring Revenue (“ARR”), when viewed with our results calculated in accordance with GAAP and the accompanying reconciliations, provide useful information about our period-over-period results. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. BARR and ARR are presented because management believes they provide leading indicators of the trends that will ultimately impact the Company’s revenues, as calculated in accordance with GAAP. BARR and ARR are performance metrics that should be viewed independently of and not as substitutes for revenue. Management also relies on Adjusted EBITDA, BARR and ARR as primary measures to review and assess the operating performance of our Company and our management and these measures are also used as factors in connection with our executive performance-based compensation. These non-GAAP key business indicators, which include Adjusted EBITDA, BARR and ARR should not be considered replacements for and should be read in conjunction with the GAAP financial measures.

authID defines Adjusted EBITDA as GAAP net loss adjusted to exclude: (1) interest expense, (2) interest income, (3) income tax expense, (4) depreciation and amortization, (5) stock-based compensation expense and (6) certain other items management believes affect the comparability of operating results. Please see Table 1 below for a reconciliation of Adjusted EBITDA continuing operations to Loss from continuing operations, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Table 1

Reconciliation of Loss from continuing operations to Adjusted EBITDA continuing operations (unaudited)

	For the Three Months Ended						For the Six Months Ended
	June 30, 2022			June 30, 2021			June 30, 2022			June 30, 2021

Loss from continuing operations	$	(6,366,520	)	$	(3,008,218	)	$	(11,466,525	)	$	(5,375,751	)

Add back:

Interest expense		459,262			253,919			493,904			551,351
Other (income)		–			(480,156	)		(3,240	)		(480,156	)
Severance cost		–			–			150,000			–
Depreciation and amortization		244,448			299,239			460,833			579,435
Taxes		7,316			1,028			8,100			6,947
Stock compensation		2,632,118			1,634,546			4,499,107			2,261,126

Adjusted EBITDA continuing operations (Non-GAAP)	$	(3,023,376	)	$	(1,299,642	)	$	(5,857,821	)	$	(2,457,048	)

The company defines Booked Annual Recurring Revenue or BARR, as the amount of annual recurring revenue represented by either (a) the minimum amounts payable under contracted orders for our Verified products booked by customers with authID, or (b) the estimated amounts of annual recurring revenue, we believe will be earned under such contracted orders. The cumulative amount of BARR under contracts for Verified products through June 30, 2022 is approximately $161,000.

The company defines Annual Recurring Revenue or ARR, as the amount of recurring revenue derived from sales of our Verified products during the last month of the relevant period (in this case June 2022) as determined in accordance with GAAP, multiplied by 12. The amount of ARR as of June 30, 2022 is approximately $154,000.

BARR may be distinguished from ARR, as BARR does not take into account the time to implement any contract for Verified, nor for any ramp in adoption, or seasonality of usage of the Verified products. BARR and ARR have limitations as analytical tools, and you should not consider them in isolation from, or as a substitute for, analysis of our results as reported under GAAP. Some of these limitations are:

BARR & ARR should not be considered as predictors of future revenues but only as indicators of the direction in which revenues may be trending. Actual revenue results in the future as determined in accordance with GAAP may be significantly different to the amounts indicated as BARR or ARR at any time.
BARR and ARR are to be considered “forward looking statements” and subject to the same risks, as other such statements (see note on “Forward Looking Statements” above)
BARR & ARR only include revenues from sale of our Verified products and not other revenues;
BARR & ARR do not include amounts we consider as non-recurring revenues (for example one-off implementation fees).

authID INC. AND SUBSIDIARIES
(formerly known as Ipsidy Inc.)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Revenues:
Verified software license	$	51,409		$	18,499		$	86,902		$	33,021
Legacy authentication services		15,000			128,272			144,559			261,810
Total revenues, net		66,409			146,771			231,461			294,831

Operating expenses:
General and administrative		4,806,275			2,733,786			9,284,897			4,343,822
Research and development		915,628			347,173			1,453,492			669,183
Depreciation and amortization		244,448			299,239			460,833			579,435
Total operating expenses		5,966,351			3,380,198			11,199,222			5,592,440

Loss from continuing operations		(5,899,942	)		(3,233,427	)		(10,967,761	)		(5,297,609	)

Other income (expense):
Other income		–			480,156			3,240			480,156
Interest expense, net		(459,262	)		(253,919	)		(493,904	)		(551,351	)
Other income (expense), net		(459,262	)		226,237			(490,664	)		(71,195	)

Loss from continuing operations before income taxes		(6,359,204	)		(3,007,190	)		(11,458,425	)		(5,368,804	)

Income tax expense		(7,316	)		(1,028	)		(8,100	)		(6,947	)

Loss from continuing operations		(6,366,520	)		(3,008,218	)		(11,466,525	)		(5,375,751	)

Loss from discontinued operations		(206,307	)		(49,392	)		(407,030	)		(171,858	)

Net loss	$	(6,572,827	)	$	(3,057,610	)	$	(11,873,555	)	$	(5,547,609	)

Net loss per share – Basic and Diluted
Continuing operations	$	(0.26	)	$	(0.15	)	$	(0.48	)	$	(0.27	)
Discontinued operations	$	(0.01	)	$	(0.00	)	$	(0.02	)	$	(0.01	)

Weighted average shares outstanding – Basic and Diluted		24,673,806			20,248,868			24,118,829			20,003,913

authID INC. AND SUBSIDIARIES
(formerly known as Ipsidy Inc.)

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 30,			December 31,
	2022			2021
	(unaudited)
ASSETS
Current Assets:
Cash	$	9,978,252		$	5,767,276
Accounts receivable, net		38,076			26,846
Other current assets		997,113			502,721
Current assets held for sale		781,895			629,752
Total current assets		11,795,336			6,926,595

Property and Equipment, net		–			25,399
Other Assets		351,024			2,501
Intangible Assets, net		1,958,142			2,379,451
Goodwill		4,183,232			4,183,232
Non-current assets held for sale		73,981			312,831
Total assets	$	18,361,715		$	13,830,009

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable and accrued expenses	$	1,784,682		$	1,778,092
Convertible debt		662,000			662,000
Deferred revenue		45,644			199,007
Current liabilities held for sale		534,118			295,332
Total current liabilities		3,026,444			2,934,431
Non-current Liabilities:
Convertible debt		7,607,011			–
Total liabilities		10,633,455			2,934,431

Stockholders’ Equity:
Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 24,789,418 and 23,294,024 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		2,478			2,329
Additional paid in capital		135,322,838			126,581,702
Accumulated deficit		(127,773,494	)		(115,899,939	)
Accumulated comprehensive income		176,438			211,486
Total stockholders’ equity		7,728,260			10,895,578
Total liabilities and stockholders’ equity	$	18,361,715		$	13,830,009

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Empower Every Possibility: LG Energy Solution Unveils Corporate Vision, Announces Mid-to-Long-Term Business Strategies

Published

42 mins ago

October 7, 2024

CISION (PR Newswire)

Company to expand into ‘circular energy business,’ going beyond battery manufacturingLG Energy Solution plans to stand at the center of the entire circular energy ecosystem, unlocking limitless business opportunitiesThe company aims to lead market as a comprehensive energy solution provider, leveraging its accumulated technological prowess and capabilitiesFour key mid-to-long-term strategies announced, aiming to more than double the revenue by 2028Building a balanced business portfolio by expanding Non-EV businessesDiversifying product and customer portfoliosEstablishing a foundation for software and service businessesStrengthening leadership in next-generation battery technologySEOUL, South Korea, Oct. 7, 2024 /PRNewswire/ — LG Energy Solution has announced its corporate vision of “Empower Every Possibility” with the aim of transcending the battery manufacturing sector and positioning itself at the heart of the global circular energy ecosystem. This marks the first time LG Energy Solution has introduced a corporate vision since its establishment at the end of 2020.

The new vision underscores that the essence of LG Energy Solution’s business lies not merely in battery production, but in facilitating the energy circulation across the entire cycle from storage to movement of energy. The company intends to become the center of this energy ecosystem, unlocking limitless business opportunities.
The company also aims to lead the market as a comprehensive energy solution provider by continuously evolving its business structure, including expanding beyond hardware to software and services business while building a more sustainable energy ecosystem.
“Our vision encapsulates the ultimate goal of LG Energy Solution to enable sustainable growth,” said David Kim, CEO of LG Energy Solution. “The meaning of this vision is to expand our business with energy that awakens all potential powers, thereby enabling the company and its members to realize infinite growth potential.”
He added, “Based on LG Energy Solution’s DNA of success, which continually embraces opportunities to achieve remarkable results, we will generate more business prospects while strengthening our technological leadership to thrive in the market.”
Eyes set on doubling the revenue by 2028, the company outlines four mid-to-long-term strategies LG Energy Solution presented its five-year goals to more than double the revenue compared to 2023 (KRW 33.7 trillion), and achieve mid-teen percent EBITDA margin (excluding the IRA tax credit) by 2028 to secure stable profitability and cash generation capabilities.
Aligned with these goals, the company also outlined four mid-to-long-term strategies: building a balanced business portfolio by expanding non-EV businesses; diversifying the EV product and customer portfolios; securing a business foundation in software and services; and strengthening next-generation battery technology leadership.
First, the company will seek to secure a balanced business portfolio by actively expanding its non-EV businesses. The company plans to reduce dependence on the EV battery business and continue to increase the Energy Storage System (ESS) business in its portfolio. Furthermore, the company will put more efforts into new application businesses with high growth potential, such as Urban Air Mobility (UAM), vessels, and robotics to construct a more resilient business structure that can withstand market fluctuations.
Second, LG Energy Solution will diversify its EV products and customers. Beyond premium batteries centered on high-nickel chemistry, the company will improve its competitiveness in affordable markets through its LFP, LMFP, and high-voltage mid-nickel products. Additionally, the company plans to expand its cylindrical battery customer portfolio to include traditional automakers leveraging its 46-series, and will actively consider developing other new form factors tailored to customer needs.
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Finally, LG Energy Solution will focus all efforts on securing leadership in next-generation battery technologies to bring more innovation to the sector. Regarding solid-state batteries, the company plans to lead the market by producing anodeless products that exclude lithium anodes, and ‘graphite-based’ anode products. The company also plans to accelerate the mass production of ‘bipolar’ semi-solid batteries and low-cost high-power batteries applying sulfur and sodium. Furthermore, leveraging its outstanding dry electrode manufacturing process, the company will rapidly enhance its overall competitiveness in cost, energy density, and production yield.
Each business division shares key strategies to gain upper hands in future markets Following the announcement of its vision, LG Energy Solution presented detailed mid-to-long-term market strategies for its core Advanced Automotive Battery, Mobility & IT Battery, and Energy Storage Systems (ESS) Battery businesses.
For the Advanced Automotive Battery division, the company unveiled a growth roadmap with the mid-to-long-term goal of securing the top position in North America and reinforcing its foothold in Europe by enhancing its fundamental strengths. By 2026, the division will focus on overcoming the temporary slowdown of the EV market by improving the operational efficiency of its global production facilities. By 2028, it intends to solidify competitive edge in materials and processes with high-voltage mid-nickel pouch products and dry electrode LFP products. By 2030, the division has set an objective of securing a leading position in the EV battery market through overwhelming technological prowess and strategies tailored to specific regions and customers.
The mobility & IT battery division aims to cement its current position as the No. 1 in the global market and further widen its lead by 2028. To this end, the division will prioritize the successful mass production of its 46-series that is optimized for mobility environments, securing competitiveness across various EV models. Additionally, it will actively pursue new customer acquisition in high-power products such as power tools, vacuum cleaners, and battery backup units (BBUs), as well as in AI data servers. Furthermore, the division plans to enhance cost competitiveness by securing new technologies and processes, and achieve logistical advantages through the strategic expansion of its global production sites.
For the ESS business, the division targets a five-fold increase in revenue by 2028 through securing the largest market share in the U.S. ESS battery market. It also aims to become among the top three global system integrators (SI). In the near term, the division will pursue a leading position in the North American market through the full-scale production of ESS cells in the U.S., which is set to start in 2025, advanced SI capabilities through LG Energy Solution Vertech, and new products with higher energy capacity and longer duration. In the long term, LG Energy Solution plans to proactively respond to the rapidly changing market and secure high-margin opportunities by developing next-generation products and strengthening its power trading business.
Pursuing four core values of growth, challenge, action, and collaboration to achieve its visionIn order to achieve its vision and four mid-to-long-term strategies, LG Energy will actively pursue four core values: Power of Growth; Power of Challenge; Power of Action; and Power of Collaboration.
These core values emphasize the need to continuously strive for growth, challenge seemingly impossible goals, execute on set objectives, and work together to achieve common aims.
To this end, LG Energy Solution plans to foster a corporate culture of execution, where employees are encouraged to challenge themselves with new perspectives and approaches so that they can diligently pursue their goals once a direction is set. The company also highlighted the importance of collaboration among its workforce of 35,000 employees with diverse nationalities, backgrounds, and experiences to create differentiated value.
“We have established global standards in the battery industry with our longstanding legacy in the business and will continue to maintain our industry leader status,” said David Kim, CEO of LG Energy Solution. “I am confident that if we support each other as pace-setters and join hands, our long journey will lead us to even more wonderful landscapes and futures.”
About LG Energy Solution
LG Energy Solution (KRX: 373220), a split-off from LG Chem, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems. With 30 years of experience in revolutionary battery technology and extensive research and development (R&D), the company is the top battery-related patent holder in the world with over 58,000 patents. Its robust global network, which spans North America, Europe, and Asia, includes battery manufacturing facilities established through joint ventures with major automakers. Committed to building sustainable battery ecosystem, LG Energy Solution aims to achieve carbon neutrality across its value chain by 2050, while embodying the value of shared growth and promoting diverse and inclusive corporate culture. To learn more about LG Energy Solution’s ideas and innovations, visit https://news.lgensol.com.

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Artificial Intelligence

Addverb Announces Partnership with Mondial Relay in France

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42 mins ago

October 7, 2024

CISION (PR Newswire)

addverb-announces-partnership-with-mondial-relay-in-france

ZOETERMEER, The Netherlands, Oct. 7, 2024 /PRNewswire/ — Addverb, a globally recognised leader in robotics and warehouse automation solutions, has recently established a strategic partnership with Mondial Relay in France. This partnership involves incorporating ‘Zippy’ sorting robots into Mondial Relay’s distribution facility in La Roche-sur-Yon, France.

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Mondial Relay’s integration of the Zippy10 robots marks a significant milestone in the evolution of parcel logistics, underscoring the company’s commitment to delivering exceptional service and innovation to its customers. “We are pleased with the partnership between Mondial Relay and Addverb. The solution has enabled us to improve working conditions by reducing the risk of MSDs and increase productivity by removing final sortation at our France facility. To anticipate the peak season, we will increase to 3,000 sorts/hr just by increasing the number of robots on the same platform,” said Hoëlig Le Clainche, International Director of Engineering, Mondial Relay
Watch Full video here- https://www.youtube.com/watch?v=_jDaU4V0b0k
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For further information, please visit www.addverb.com
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ADQ Appoints Modon as Master Developer for Ras El Hekma Megaproject in Egypt

Published

2 days ago

October 4, 2024

CISION (PR Newswire)

adq-appoints-modon-as-master-developer-for-ras-el-hekma-megaproject-in-egypt

In the presence of Mohamed bin Zayed Al Nahyan and Abdel Fattah El-Sisi
The event marked the signing of several significant agreements aimed at driving the development of the new destinationABU DHABI, UAE, Oct. 4, 2024 /PRNewswire/ — In the presence of President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and His Excellency Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, ADQ, an Abu Dhabi-based investment and holding company, appointed Modon Holding PSC as the master developer for the Ras El Hekma megaproject.

In addition to being master developer for the entire development spanning 170 million square metres, Modon Holding will undertake the responsibility of the developer role for the first phase of the envisaged city consisting of 50 million square metres.
The remaining 120 million square metres, which are part of the master plan presented by Modon Holding, will be developed in partnership with prominent developers from Egypt, the UAE, and the international community under the oversight of the recently established ADQ subsidiary Ras El Hekma Urban Development Project Company and Modon Holding.
This iconic project represents a major milestone for Modon Holding by significantly increasing its land under development outside the UAE. Ras El Hekma is located around 350 kilometres northwest of Cairo and envisioned as a fully functional, smart, sustainable, and inclusive urban community situated against the scenic coastline.
The project is expected to become a powerful economic engine, with cumulative investments anticipated to reach US$110 billion by 2045, an annual GDP contribution of around US$25 billion, and approximately 750,000 jobs to be created, both directly and indirectly.
Upon completion, the development will be home to two million people and feature more than 40 kilometres of green spines, set to make Ras El Hekma the greenest megaproject in the region.
As a result of Ras El Hekma’s location within a four-hour flight for over 400 million outbound tourists, the establishment of tourism infrastructure will be a priority during the first phases of the development, encompassing an international airport as well as high-speed rail connectivity. The masterplan also includes residential areas, office spaces, hospitality venues, retail, leisure, and recreation facilities.
Ras El Hekma will have an international marina and a special free zone. Additionally, Modon Holding will look to develop infrastructure to support a range of high-growth industries, including business services, financial services, light manufacturing, and technology.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, Chairman of Modon Holding, said, “Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions. Modon Holding is proud to bring this 170-million-square-metre visionary megaproject to life, leveraging our expertise and innovative approach. With our partners, we are poised to transform Ras El Hekma into a dynamic economic powerhouse and a global model for urban development.”
His Excellency Mohamed Hassan Alsuwaidi, Managing Director and Group Chief Executive Officer of ADQ, said, “As a project of unprecedented scale and impact, Ras El Hekma will be a catalyst for the development of Egypt’s economy by offering opportunities for businesses and stimulate tourism. Modon Holding brings a wealth of expertise in master planning and will pioneer state-of-the-art, innovative solutions, creating a destination that will deliver long-term value for Egypt and its people.”
Bill O’Regan, Group CEO of Modon Holding, said, “The Ras El Hekma destination is one of the Group’s most significant investment and development projects outside the UAE. The project provides an incredible development pipeline, and Modon Holding looks forward to delivering a destination that will be an exceptional experience for visitors and residents alike.”
During the ceremony, Modon Holding PSC engaged with the initial major partners to join in the development of the Ras El Hekma megaproject on Egypt’s stunning Mediterranean coast.
Ras El Hekma is set to become a leading urban and tourist hub, boasting a wide array of attractions and amenities. Modon Holding aims to harness its large-scale development expertise, collaborating with local, regional, and global partners to bring this visionary destination masterplan to life.
These collaborative efforts, combined with a focus on diverse entertainment, sports, cultural events, and top-tier community management, will position Ras El Hekma as a premier Mediterranean destination.
While the immediate focus is on tourism and hospitality, Modon’s long-term vision for the 170-square-metre site also includes business services, financial services, light manufacturing, and technology.
Modon Engages First Batch of Investors and Partners in Landmark Ceremony
On 4th October, in a momentous ceremony attended by President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Egyptian President His Excellency Abdel Fattah El-Sisi, Modon proudly initiated the engagement of its first group of investors and partners.
The event marked the signing of several significant agreements aimed at driving the development of the new destination:
– A framework agreement with Orascom Construction, designating them as one of the primary contractors for the initial phase of the project.
– A memorandum of understanding with Elsewedy Electric to explore opportunities for supplying building materials and collaborating on industrial parks, manufacturing, operations, and maintenance.
– A memorandum of understanding with Abu Dhabi Airports to collaborate in airport strategic planning, design, development, and operational support.
– A memorandum of understanding with TAQA to explore cooperation opportunities in relation to the development, financing, and operation of greenfield utilities infrastructure projects, water desalination projects, electricity transmission and distribution projects and wastewater projects.
– A memorandum of understanding with Valderrama for the development and operation of golf communities.
– A memorandum of understanding with e& Egypt to facilitate the design and implementation of smart city infrastructure, including digital connectivity, fiber networks, and 5G; smart building technologies and IoT-enabled solutions for residential and commercial properties; city-wide data collection, monitoring, and analytics systems; smart utilities, encompassing automated energy management, water, and waste systems; smart transportation systems; and any other mutually agreed smart city services.
– A memorandum of understanding with Candy International aims to explore luxury real estate development opportunities, leveraging Candy’s extensive international reach.
– A memorandum of understanding with Montage International for the development and management of luxury hotels in Ras El Hekma.
– A memorandum of understanding with Accor and Ennismore to operate hotels and resorts in Ras El Hekma.
– Finally, a memorandum of understanding with Burjeel Holding to develop multi-specialty healthcare facilities, implement innovative healthcare solutions, provide medical training programmes, and collaborate on public health initiatives and community wellness programmes.
These strategic partnerships underscore Modon’s commitment to creating a world-class destination, fostering innovation, and enhancing the quality of life for Ras El Hekma’s future residents.
His Excellency Jassem Mohamed Bu Ataba Al Zaabi, said, “Ras El Hekma represents a visionary and multifaceted endeavour that promises to make a substantial contribution to the Egyptian economy. Crafting a masterplan of such scale demands specialised expertise and capabilities across diverse industries, which can only be realised through robust strategic partnerships. We look forward to working with our partners present and future in harnessing the full potential of this extraordinary location.”
Bill O’Regan, said, “Ras El Hekma is an extraordinarily ambitious and complex project that will significantly contribute to the Egyptian economy through various stages of planning, design, and construction, ultimately bringing this new destination to life. Developing and delivering a masterplan of this magnitude requires sector-specific expertise and capabilities across a wide range of industries and is achievable only through strong strategic partnerships.”
About ADQEstablished in 2018, ADQ is an Abu Dhabi-based investment and holding company with a broad portfolio of major enterprises. Its investments span key sectors of the UAE’s diversified economy including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics, amongst others. As a strategic partner to the Government of Abu Dhabi, ADQ is committed to accelerating the transformation of the Emirate into a globally competitive and knowledge-based economy.
For more information, visit adq.ae or write to [email protected]. You can also follow ADQ on Instagram, LinkedIn and X.
About Modon HoldingModon develops vibrant communities, unique hospitality and lifestyle experiences, and world-class sports facilities. Based in Abu Dhabi, Modon Holding is a Private Joint Stock company listed on the ADX Growth Market with the shareholding of ADQ and the IHC Group being our majority shareholders. Through a diversified business portfolio in the UAE, we are engaged in strategic investment and innovation on an unrivalled scale, shaping future smart living. Our goal is to deliver long-term, sustainable value, laying the foundations for intelligent, connected living.
Ras El-Hekma Urban Development Project CompanyA wholly owned subsidiary of ADQ, an Abu Dhabi-based investment and holding company, Ras El Hikma Urban Development Project Company S.A.E. (RED) is mandated to oversee the execution of the Ras El Hekma project, a 170 million square meter visionary megacity located on Egypt’s north coast. Established in March 2024 and based in Egypt, RED holds the ownership rights of the Ras El-Hekma as well as responsibility for the implementation of the multi-phase project together with its partners, which include Modon Holding as the master developer.
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