AR9 - archTIS Limited

[Dona Ferentes]

up to 38c .... nice run over the last few days - getting to what some consider a Potential Breakout Level

 

[Country Lad]

up to 38c .... nice run over the last few days - getting to what some consider a Potential Breakout Level

Potential is there, but maybe not today by the looks of the current sentiment.

 

[Dona Ferentes]

Highlights:

• archTIS acquires technology assets including customers, staff and the European operations of Cipherpoint Limited (CPT) software division.
• The acquisition represents significant value for shareholders at ~3.8x the acquired annual recurring revenue; while being immediately accretive to earnings.
• Strategic acquisition providing archTIS with a unique data discovery and encryption technologies that are complementary to NC Protect and can be upsold and cross utilised within the existing Microsoft technology stack.


The purchase price consists of $1.4M in cash with $200K of the initial purchase price held in escrow until the novation of certain contracts. In addition, further consideration of up to $1M is to be paid based on total contract values of contracts assigned to archTIS as of 31 March 2022

Cipherpoint Executive Director, Joint Company Secretary and COO, Steven Bliim, who will join archTIS as Vice President.;Business Development, EMEA, said, "I am excited about this transaction, especially in its potential to deliver growth opportunities for both businesses in addition to the sales and support systems already well established in archTIS. With a number of new pipeline opportunities already underway, I look forward to further cultivating an even stronger working relationship as a member of the archTIS team."

Daniel Lai, Managing Director and CEO of archTIS, stated, I" am pleased to add the Cipherpoint technology, support and sales teams to archTIS. The acquisition clearly demonstrates our fiscal responsibility and our ability to consistently execute on what we have communicated to shareholders and the market around targeting acquisitive growth. We are capital efficient in how we price and evaluate deals and how we are not afraid to look out of the box for this or other acquisitions."

 

[Dona Ferentes]

AR9 came out with its Quarterly, and there was a selloff, slipping to 26c. For an outfit that is meant to be all about growth and margins, news is thin on the ground

Then, before 11am, an Ann of a new contract saw a lift , but still under 30c

• archTIS secured a contract with an Australian National Intelligence and Law Enforcement agency for the deployment of technology from partner Okera’s universal data authorisation platform.
• archTIS, through its partnership with Okera, can now offer end-to-end solutions for zero-trust data access control across any organisation’s structured and unstructured data holdings.
• The total contract value is $449,570, with $241,500 of annual recurring licensing.

The language from both parties is gushingly effusive. Let's hope the sum of parts leads to something:

Daniel Lai, archTIS Managing Director, said: “This win marks the first for our partnership with Okera. It is rare to find a partner that you align with so strongly from a business perspective and can work with seamlessly, Okera is one of those partners. Their complimentary platform offers the same policy-based ABAC control over structured data that our products deliver for unstructured data. Combined, we can provide an end-to-end solution for granular, zero-trust data access control to ensure all of our joint customers data – from structured to unstructured – is protected.”

John F. Marchese, Okera Vice President Global Alliances & Partner Sales Channels, said: “It has been a wonderful experience to partner with archTIS, as it is rare to find two companies so well aligned in their focus and expertise around data challenges. At Okera we believe it is vital for organisations to have a secure data access layer to protect and secure sensitive data while ensuring compliance with various privacy regulations. We also know that archTIS has the deep industry experience and vertical market knowledge that is critical to implement comprehensive solutions for the most challenging needs of customers. Our combined capabilities are extensive.”

 

[finicky]

Still holding 30,000 of these left over from your tip. Looks like full liquidation a year ago in the +50c range was the the way to go. Might sell out, all their announcements lead to small potatoes dollar wise.

 

[Dona Ferentes]

Still holding 30,000 of these left over from your tip.

talk of a tip is rubbish. a pile of garbage.

I've arrived at a conclusion similar to yours but from a different route. I post because I hold. I piled in the 5.5c SPP and then sold half (at 34c then 56c) to be free carried. So I sit and wonder if rump proceeds could be deployed elsewhere and better, with any views on opportunity and risk and sector allocation confounded by hesitancy and torpor.

Yes, you're right, most contracts seem to be small beer, at present.

 

[finicky]

Loquacious

 

[frugal.rock]

Loquacious

Chatty

 

[Dona Ferentes]

well, it is a chat room

 

[Dona Ferentes]

Trading Halt ... pending an announcement regarding a capital raising.

Hmmm.

 

[Dona Ferentes]

ArchTIS has enlisted Amicaa Advisors to help it raise $8 million to fund the expansion of its document sharing platform Kojensi into the US and UK and for possible M&A activity.

The raise will take the form of a $6.5 million placement for institutional investors, and a $1.5 million share purchase plan, according to the term sheet.

The offer is priced at 23¢, representing a 13.2 per cent discount to its last traded price.

Investors will also be offered an attaching option on a one for three basis. The option will have an exercise price of 35¢ and a two-year expiry.

The overseas expansion of its Kojensi platform comes after its successful deployment with the Australian Department of Defence. It is also already used by the UK defence department.

 

[Dona Ferentes]

it's official ... and SP will drift to around the 23c mark. For a while.

archTIS Announces Placement and SPP to Raise up to AU$8 Million to Accelerate Growth Initiatives

Highlights:

• Strong demand from both domestic and international institutions as well as sophisticated investors secures firm commitments in a Placement to raise $6.5 million at $0.23 per Share.
• Existing shareholders are invited to participate in a $1.5 million Share Purchase Plan (SPP) on the same terms as the Placement.
• Placement and SPP participants will receive one free-attaching unlisted option (exercisable at $0.35, expiring 2 years from the date of issue) for every three Shares received under the Placement or SPP.
• Funds will be used to expand archTIS’ product offering and geographic reach into key markets in the US and UK, to continue to execute on M&A strategy and build on an existing relationship with Microsoft through IP Co-sell opportunities.

 

[Dona Ferentes]

This is going to be awkward

• Closing Date of the SPP Offer and announcement of the results of the Offers** ..16 December 2021
• Issue of Securities under the SPP Offer .... 23 Dec 2021

whereas on p1 of the PDS.,
The SPP is currently scheduled to close at 5:00pm (WST) on 23 December 2021.

and as the offer is for SPP @ 23c with free options (nothing is free !) and today AR9 is trading at 22.5c ... = a month of excruciating ambivalence.

(won't be like the SPP last year, that's all I know!!)

 

[Garpal Gumnut]

This is going to be awkward

• Closing Date of the SPP Offer and announcement of the results of the Offers** ..16 December 2021
• Issue of Securities under the SPP Offer .... 23 Dec 2021

whereas on p1 of the PDS.,
The SPP is currently scheduled to close at 5:00pm (WST) on 23 December 2021.

and as the offer is for SPP @ 23c with free options (nothing is free !) and today AR9 is trading at 22.5c ... = a month of excruciating ambivalence.

(won't be like the SPP last year, that's all I know!!)

I must admit I wouldn't trust any of this mob to go down the road and buy me a half scoop of chips, and bring it back.

They may be good at what they do tech-wise but I have doubts about the ability of the board to govern in a proper manner.

gg

 

[Garpal Gumnut]

On Friday 24/12/2021 over 8 million shares of AR9 come out of escrow.

Price has been a bit fragile of late. Trading around 19c this afternoon on Vol of about 600,000.

gg

 

[Dona Ferentes]

On Friday 24/12/2021 over 8 million shares of AR9 come out of escrow.

Price has been a bit fragile of late.

and a list of the Top 20 , following the rather lacklustre capital raise, has been published. Had a double-take, as in there at #1 was SOL Soul Patts, at 21.6%, and some outfit Brio Capital at 14%. Then I saw it was for the options AR9O

So these are the recipients of options and thus must have subscribed for the heads, in that allocation. Only 10 million issued hence the uptake was low.

 

[Dona Ferentes]

Price has been a bit fragile of late. Trading around 19c this afternoon on Vol of about 600,000.

Daniel Lai did a webinar recently. .... there was no announcement but the link is here

ArchTIS (ASX: AR9) - Innovative solutions for cyber security - ShareCafe

Daniel Lai - CEO - ArchTIS is a global provider of innovative software solutions for the secure collaboration of sensitive information.

www.sharecafe.com.au

He talks very confidently (this time) and explains well. After the 10 minutes review of product and where they are, there is some Q&A; he talks about recent SP softness (broad cyber security enthusiasm about 18 months ago across the whole industry). From 13 to 14 minutes, it's well worth a listen. And then he talks about the relationship with MicroSoft, the pluses and minuses. For me the key takeout is that locally developed Kojensi is looking to get accreditation in the US and UK (will spell it out; AUKUS), which should happen within 12 months. Success is not assured, of course.

 

[finicky]

Convincing break outside downtrend resistance line yesterday. Could be just forming a base, would need a firm break above 20c to look bullish imo. Momentum has changed.

Daily

 

[Dona Ferentes]

Convincing break outside downtrend resistance line yesterday. Could be just forming a base, would need a firm break above 20c to look bullish imo. Momentum has changed.

good pickup .. had a loaded 17c buy at the start of the week but missed it.

 

[Dona Ferentes]

The Quarterly came out with an Investor Presentation set of slides.

Almost pleadingly, the last slide was:
5 Reasons to Invest Now

1. Low priced EV of A$41.5M with $12.5M on balance sheet
2. ARR growth supported by higher margins and low customer churn
3. Microsoft IP Co-sell relationship with established pipeline and marquee customers including AUS Defence
4. Global market tailwinds with 26% CAGR for datacentric security across zero-trust architecture
5. Built-out global sales infrastructure US / APAC / EMEA