Identitii (ASX:ID8) to raise $4M to speed-up sales

• Regtech company Identitii (ID8) has received binding commitments to raise $4 million via an oversubscribed placement
• Roughly 27.5 million shares will now be issued to sophisticated and institutional investors at 14.6 cents
• The company has also announced it will undertake a share purchase plan to raise an additional $2 million
• Eligible shareholders will be able to subscribe for up to $30,000 worth of shares at 14.6 cents
• Identitii will use the money from both the placement and SPP to speed-up its sales, marketing and product activities
• Shares in ID8 have dropped 10 per cent on the market, currently trading at 18 cents

Identitii (ID8) has received binding commitments to raise $4 million via an oversubscribed placement.

The regtech company entered a trading halt on November 24 but did not reveal how much it intended to raise or what it would use the funds for.

Roughly 27.5 million shares will now be issued to sophisticated and institutional investors at 14.6 cents. Shares are expected to be issued on December 3.

Identitii has also announced it will undertake a share purchase plan (SPP) to raise an additional $2 million.

Eligible shareholders will be able to subscribe for up to $30,000 worth of shares at 14.6 cents and CEO John Rayment will take up his full allocation.

Identitii will use the money from both the placement and SPP to speed-up its sales, marketing and product activities.

The company recently signed a five-year agreement with Mastercard which allows ID8 to sell its software to any Mastercard business globally.

Identitii’s software enables the secure exchange of information within a bank, between a bank, or between a bank and a corporation.

“Earlier in the year, I reported that 85 per cent of Identitii employees had participated in our previous capital raise, and I am pleased to say that many of our eligible team members intend to participate in the current SPP, including myself,” John commented.

“We have achieved a number of key milestones this year, received several global industry awards to validate our revised strategy, and remain on track to deliver further commercial announcement before year-end,” he added.

“I’m enormously thankful for the strong interest both existing and prospective inverts have shown in Identitii and look forward to translating that into real value for our shareholders,” he added.

Identitii has dropped 10 per cent on the market, with shares currently trading at 18 cents at 12:47 pm AEDT.