archTIS Ltd has finalised a $3.5 million capital finance program to help continue the expansion of Kojensi, the company’s multi-level security platform for classified file sharing and document collaboration, into the US and international markets.
Kojensi provides a secure collaboration solution for companies that must meet strict Export Control and International Traffic in Arms Regulation (ITAR) information handling requirements, as well as providing secure sensitive and classified information sharing for the government, defence, and the defence industrial supply chain collaboration.
Leveraging the strong relationship with existing Kojensi Defence primes in Australia, funds will support US accreditation, marketing, and sales.
Kojensi and Kojensi SaaS achieved 100%+ sales growth during FY22 in the Australian markets and carry a strong customer base including SAP, Thales, Northrop and a number of key Australian government agencies including the Department of Defence.
Balancing equity and debt
archTIS is executing a capital finance program comprising of:
- Successful $1.5 million share placement via a targeted raise among key US and Australian long-term institutional investors at $0.105 per share coupled with a combined 12.5% participation from all senior executives and directors of the company (subject to shareholder approval to be sought);
- existing shareholders will be invited to participate in an additional $500,000 share purchase plan (SPP) on the same terms as the placement; and
- $1.5 million market rate facility through the Commonwealth Bank of Australia (ASX:CBA).
Given the challenging market conditions, archTIS believes it has undertaken a pragmatic approach to balancing equity and debt.
“Testament to our underlying growth story”
archTIS managing director and CEO Daniel Lai said: “We appreciate the confidence and support that our key institutional investors, shareholders and new investors have provided to archTIS through this very targeted raise.
“Their support is a true testament to our underlying growth story.
“Following the expense reduction and optimisation of the business announced a few weeks ago, we remain focused on ways to position ourselves for opportunistic growth; including the expansion of Kojensi into new markets, while pursuing our stated goal of becoming cash flow positive during a very volatile and challenging market.”
