archTIS Ltd has received firm commitments from domestic and international institutions as well as sophisticated investors to raise A$6.5 million through a strongly supported placement at an issue price of A$0.23 per share.
The company is also offering eligible shareholders in Australia and New Zealand the opportunity to participate in a share purchase plan (SPP) to raise a further A$1.5 million on the same terms as the placement.
Notably, capital raising funds will be used to expand archTIS’ product offering and geographic reach into key markets in the US and UK, to continue to execute on its mergers and acquisitions (M&A) strategy and build on an existing relationship with Microsoft through IP Co-sell opportunities.
“Bolsters strategic efforts”
archTIS managing director and CEO Daniel Lai said: “We were pleased to see such strong demand from domestic and international institutions following our recent decision to be quoted on the OTCQB Market.
“A diversified shareholder base bolsters our strategic efforts to scale our information security technologies in the US and globally.
“By expanding our market reach with Kojensi, NC Protect and cp. Protect, we expect to leverage our success with Australian Defence in other geographical regions and accelerate pipeline through our alliance with Microsoft IP Co-sell. archTIS is now well placed to execute on our global product and sales strategy.”
Placement summary
archTIS has received firm commitments for a placement of 28,260,870 fully paid ordinary shares.
Participants in the capital raising will also be entitled to receive one option (exercisable at A$0.35, expiring two years from the date of issue) for every three shares acquired in the placement and SPP.
The issue price for the placement and SPP of 23 cents per share represents a 13.2% discount to the last closing price on the ASX on November 9, 2021.
amicaa Advisors acted as lead manager & bookrunner for the placement.
Use of funds
Funds raised will be used to leverage prior success with the Australian Department of Defence through the launching and introduction of Kojensi into key regional markets of US FED and the UK.
The company will also continue to explore and execute a proven M&A strategy that drives product, customer and geographical expansion toward greater ARR.
Furthermore, archTIS will build pipeline and close opportunities in conjunction with the Microsoft field through IP Cosell across Defence and other regulated industries.
About the company
archTIS is a global provider of innovative software solutions for the secure collaboration of sensitive information.
The company’s award-winning data-centric information security solutions protect the world’s most sensitive content in government, defence, supply chain, enterprises and regulated industries through attribute-based access and control (ABAC) policies.
archTIS products include Kojensi, a multi-government certified platform for the secure access, sharing and collaboration of sensitive and classified information.