Cipherpoint Ltd (ASX:CPT) has extended the closing date of its non-renounceable pro-rata rights issue offer to raise up to $3.96 million before costs at an issue price of 4.7 cents per new share to March 22.
The decision to extend is consistent with the commitment of the company to facilitate eligible shareholder participation in the rights issue.
Cipherpoint’s rights issue comprises one new share for every two shares, with every four new shares to be accompanied by 1 free-attaching new option at an exercise price of 8 cents and an expiry date 12 months from issue of the placement options.
More than 21.27 million shares issued
The company has issued more than 21.27 million shares to participants in the recent placement raising $1 million (before costs).
This follows the company receiving binding commitments for the placement at an issue price of 4.7 cents per ordinary share, together with one free-attaching option for every four shares under the placement, with each option having an exercise price of 8 cents with an expiry of 12 months from issue.
The placement shares are being issued at an 8% discount to the 15-day VWAP of CPT’s ordinary shares.
Use of funds
Net capital raised will be used as follows:
- Meet costs of the Brace168 transaction;
- Meet costs of integration of the Brace 168 and CPT businesses;
- Fund the expansion of the existing CPT business following the integration above;
- Fund the anticipated growth of the Brace168 business;
- Establish a second point of presence for Security Solutions in Europe co-located with CPT’s existing business in Heilbronn, Germany; and
- Group working capital.
Binding term sheet to acquire cybersecurity services platform
The company recently entered into a binding term sheet to acquire 100% of the issued capital in cybersecurity services platform Brace168 Pty Ltd for cash and shares in the company.
It is anticipated the transaction will complete by early March 2021 or shortly thereafter.
CPT plans to raise further capital of not less than $2 million under a placement and rights issue to fund the acquisition and expand its existing business, among others.