archTIS Ltd (ASX:AR9) last week completed a placement of around 30.5 million shares at 5.5 cents per share to sophisticated, institutional and professional investors, raising about $1.65 million.
The company is now providing eligible shareholders with an opportunity to participate in its capital raising activities via a share purchase plan to raise up to $500,000.
Under the plan, eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares at the same price as the placement, irrespective of the size of their shareholding, without incurring brokerage or transaction costs.
The closing date for the plan is Tuesday, June 9, 2020.
Targeted limit
The targeted limit for the plan of $500,000 has been determined as a reasonable amount to target from the company’s eligible shareholders who did not qualify to participate in the placement pursuant to the Corporations Act.
However, all eligible shareholders are invited to participate regardless of whether they participated in the placement.
archTIS reserves the right to take any oversubscriptions at its discretion and in accordance with the ASX Listing Rules, although according to the ASX Listing Rules a maximum of 45,117,039 shares can be issued - which is equal to 30% of the company’s existing issued share capital inclusive of the placement shares to be issued on May 18, 2020.
Current activities
Funds raised under the plan and the placement will be used to execute and convert on the company’s significant pipeline of customer opportunities for its Kojensi data security product and to supplement working capital.
The company has been focused on developing the core technology of its Kojensi Gov and Kojensi Enterprise products during the March quarter and is now focused on the sales and marketing of products into identified markets.
archTIS aims to build a sales pipeline and execute opportunities in 2020 and 2021 with new leads in Australia, New Zealand, USA and Europe.