Cipherpoint Ltd (ASX:CPT) has gained considerable momentum from positive funding and cost reduction initiatives which include capital raising, issue of convertible notes and board and management changes.
The company has received all funds from its recent placement of $150,000 and the issue of convertible notes raising a further $800,000.
CPT’s cost reduction program has saved more than $1 million in annualised costs, having been identified and removed without any material adverse impact on the business.
Subsequently, a further $400,000 in costs are being targeted in the second phase of reductions.
Cost reduction program
CPT’s board consists of chairman Ted Pretty and Steven Bliim, both as non-executive directors, and Graham Mirabito, all of whom have suspended directors’ fees.
To support management efforts in the short term, Mirabito has also agreed to work in an executive director capacity for no remuneration to focus his extensive experience skills and sales and marketing knowledge on the company’s businesses.
The company’s head of product, Hugh Stodart, will take over day-to-day responsibility for Brace168.
Brace168 founders Greg Bunt and Matt Miller will transition from fulltime employees at the end of August to independent contractors continuing their relationship with Brace168 thereafter as members of its customer advisory council.
Mark Hitchcock COO of VITCS (Tasmania) will continue in his role.
Operational updates
Brace168 has achieved renewal of its ISO 27001 certification for information security management system requirements.
Mark Hitchcock has met and exceeded the first performance target for his earn-out arising from the acquisition of VITCS in Tasmania.
Furthermore, the company remains in discussion with two possible acquisition targets.