Funds raised under the SPP will be used to further support Covata’s focus on Europe, ongoing digital marketing and lead generation campaigns for its SafeShare for International Trafficking in Arms Regulation (ITAR) product in the US and Europe.
Covata chief executive officer Ted Pretty said: “Covata is in the commercialisation phase of its new products and intends to make further investments in marketing, lead generation and sales conversion.
“We are inviting shareholders to increase their holdings in Covata and to provide us the ability to fund these activities.
“The decision to undertake an SPP is to ensure that all existing shareholders can participate”.
Covata’s SafeShare is in use by more than 27 Australian government agencies and enterprises in sensitive industries such as defence, both in Australia and internationally.
The SafeShare Trust technology makes key aspects of stored files immutable and enables blockchain to be the point of trust for access control to the data, ensuring it is securely shared and not tampered with.
The SPP provides the opportunity for eligible shareholders to subscribe for up to $15,000 worth of shares each without incurring brokerage or other transaction costs.
The issue price of 1.8 cents per share represents a 10% discount to the 30-day VWAP (volume weighted average price) up to and including November 29, 2018.
Indicative timetable of the SPP