Cipherpoint Ltd’s (ASX:CPT) directors have confirmed their participated in the company’s rights issue and will subscribe for their full entitlements with funds to support the acquisition of Brace168 Pty Ltd.
Chief executive officer and MD Ted Pretty, executive director and joint company secretary Steven Bliim and non-executive director Graham Mirabito will participate in the rights issue to raise up to $3.9 million at an issue price of 4.7 cents per share.
The company’s recent decision to extend the close date of the rights issue 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.
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.
To acquire cybersecurity services platform
The company recently entered 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.
CPT plans to raise further capital under a placement and rights issue to fund the acquisition and expand its existing business, among others.