“We were delighted to see such demand from national and international institutions following our recent decision to list on the OTCQB market,” says MD.
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 backed placement at an issue price of A$0.23 per action.
The company is also offering eligible shareholders in Australia and New Zealand the opportunity to participate in a share purchase plan (SPP) to raise an additional A$1.5 million on the same terms as the placement.
Notably, the fundraising will be used to expand archTIS’ product offering and geographic reach in key markets in the US and UK, to continue executing its mergers and acquisitions (M&A) strategy and build on an existing relationship with Microsoft through IP Co-sell opportunities.
“Reinforce strategic efforts”
archTIS Managing Director and CEO Daniel Lai said, “We were delighted to see such demand from national and international institutions following our recent decision to list on the OTCQB market.
“A diverse shareholder base strengthens our strategic efforts to scale our information security technologies in the United States and around the world.
“By expanding our market reach with Kojensi, NC Protect and cp. Protect, we plan to leverage our success with Australian Defense in other geographies and accelerate the pipeline through our alliance with Microsoft IP Co-sell. archTIS is now well positioned to implement our overall product and sales strategy. »
archTIS has received firm commitments for an offering of 28,260,870 fully paid common shares.
Participants in the capital increase will also be entitled to receive an option (exercisable at A$0.35, expiring two years from the date of issue) for three shares acquired under the placement and the SPP.
The issue price for the placement and SPP of 23 cents per share represents a 13.2% discount to the ASX’s last closing price on November 9, 2021.
amicaa Advisors acted as lead manager and bookrunner for the placement.
Use of funds
Funds raised will be used to build on previous successes with the Australian Department of Defense through the launch and introduction of Kojensi in key US Fed and UK regional markets.
The company will also continue to explore and execute a proven M&A strategy that drives product, customer and geographic expansion into greater ARR.
Additionally, archTIS will build a pipeline and close opportunities in collaboration with the Microsoft domain through IP Cosell in defense and other regulated industries.
About the company
archTIS is a global provider of innovative software solutions for secure collaboration of sensitive information.
The company’s award-winning data-centric information security solutions protect the world’s most sensitive content in government, defense, supply chain, enterprise and regulated industries with access policies and attribute-based control (ABAC).
archTIS products include Kojensi, a multi-government certified platform for secure access, sharing and collaboration of sensitive and classified information.