- archTIS (AR9) reveals plans to raise $8 million to accelerate growth initiatives
- Following a trading halt, AR9 says it has received strong demand for a share placement to raise $6.5 million, and plans to raise an extra $1.5 million through a share purchase plan
- Participants of both the placement and SPP will receive one free-attaching unlisted option for every three shares
- The funds will go towards expanding product offerings in the UK and US as well as working on ways to build on existing relationships to increase revenue
- Shares have been trading 9.4 per cent lower at 24 cents
archTIS (AR9) has revealed plans to raise $8 million to accelerate growth initiatives.
The software solutions company emerged from a trading halt today, announcing it received strong demand from domestic and international institutions, as well as sophisticated investors, for a share placement to raise $6.5 million.
Additionally, existing shareholders have been invited to participate in a share purchase plan (SPP) to raise a further $1.5 million.
Both the placement and SPP will see shares issued at 23 cents, representing a 13.2 per cent discount to the last closing price on November 9.
Participants will also receive one free-attaching unlisted option for every three shares received under the placement or SPP. These options will be exercisable at 35 cents and will expire two years from the date of issue.
Managing Director and CEO Daniel Lai said the company was pleased to see such strong demand for the capital raise following the decision to begin trading in the United States on the OTCQB.
“A diversified shareholder base bolsters our strategic efforts to scale our information security technologies in the US and globally,” he said.
With the funds raised, AR9 hopes to leverage off its work with the Australian Department of Defence and launch its Kojensi product into key regional markets of US FED and the UK.
Kojensi is a multi-government certified platform for the secure access, sharing and collaboration of sensitive and classified information.
The company said the funds will also enable the continuation of its strategy to drive product, customer and geographical expansion to grow its annual recurring revenue.
Moreover AR9 plans to continue building a pipeline and closing opportunities in conjunction with the Microsoft field through IP Cosell across Defence and other regulated industries.
Shares were trading 9.43 per cent lower at 24 cents at 1:15 pm AEDT.