Cipherpoint Ltd (ASX:CPT) is moving to place the shortfall of a recent rights issue before or shortly after an upcoming extraordinary general meeting (EGM) to facilitate the approval of the Excite IT acquisition, which is conditional on the rights issue being fully subscribed.
Read: Cipherpoint sets sights on Sydney-based cyber services company Excite IT
Excite IT is a leading provider of managed IT and security services, cloud solutions and automation technologies.
This proposed acquisition would allow Cipherpoint to offer a range of managed security, IT, and cloud solutions.
General business update
Cipherpoint has provided several general business updates in its latest announcement.
The company says an encouraging June quarter has facilitated a renewed business focus on refilling the sales pipeline, particularly through Cipherpoint’s partner network.
“We are seeing positive momentum and good growth in the pipeline leads,” the announcement stated.
CPT says it enjoys strong opportunities in this regard from its existing customer base, but more importantly from new customers, with new customers accounting for 50% of sales this quarter.
The company claims to have received strong interest from prospective customers for its managed detection and response services in Tasmania, and with the help of its partners has expanded lead generation and secured new opportunities across Queensland, WA, NSW and Tasmania.
Finally, following approval of the Excite IT acquisition at the EGM, Cipherpoint expects to welcome Excite IT CEO Bryan Saba to its leadership team.
Saba has already been working with members of Brace168 and VIT Cyber Services and integration plans are well underway.