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CYB - AUCyber Limited

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AUCloud is an Australian sovereign cloud Infrastructure as a Service (IaaS) provider exclusively focused on the Australian Government, the Australian Defence Force (ADF) and Critical National Industry communities (CNI).

The Australian Government invests in Information and Communication Technology (ICT) systems to support the secure and continuous delivery of government business. Secure ICT systems maintain the confidentiality, protect the integrity and facilitate the availability of the information that government entities process, store and communicate. It is estimated that the Australian Government will spend over $13 billion per year to maintain and grow its ICT capabilities.

Cyber threats to government and commerce posed by malicious actors have increased in line with increased connectivity. Increased geopolitical tensions, increased crime, control of legal authority and locality of data have heightened the importance of sovereign security solutions. Global IaaS brands with resources distributed globally may store data overseas which opens the stored data to legal, jurisdictional compromise.

AUCloud's IaaS service provides its customers with a highly secure, scalable, automated cloud solution, delivering an efficient and effective hosting environment for critical and sensitive applications and systems. The services and data managed by AUCloud are all hosted and maintained in Australia. AUCloud will seek to secure contracts from the Australian Government, ADF and CNI where it has this strategic advantage.

The Company has invested significantly into creating two autonomous inter-connected geographically diverse Sovereignty Zones in Canberra and Sydney. Through the Company's ecosystem of over 60 channel partners, AUCloud has built a pipeline of sales opportunities.

It is anticipated that SOV will list on the ASX during December 2020.

www.australiacloud.com.au

Australia’s award-winning cyber security and secure cloud provider | AUCloud

AUCloud is an award-winning sovereign provider of cloud solutions and cyber security services, supporting Australia's leading organisations and Government
www.australiacloud.com.au www.australiacloud.com.au
 
Raising $20 million, at $0.75 a share

Trading starts at 11.00am .... opening looks strong (for what looks like a REIT)
 
Dona Ferentes said:
Raising $20 million, at $0.75 a share

Trading starts at 11.00am .... opening looks strong (for what looks like a REIT)
Click to expand...
Nearly 12 months later raised $35 million, at $0.50 a share. SP is currently $0.72. Market cap is $120 million. Still not sure what they do other than 'cloud' stuff? Quarterly revenue was about a million dollars and negative 1.5 million in cash outflows. Is this a situation where mates are going to be rewarding mates with government contracts? Valuation is ridiculous.

Data fundamentally will never ever ever ever ever be secure if it is connected to the cloud. Some kid in Russia or China will always be able to get in somehow. But hey, that's a lotta cash to have on hand. So may as well have a crack and spend it.

Doubt the SP will be this high in 12 months.
 
another nebulous offering...

AUCloud (SOV) is today launching a ~A$8.49 million pro-rata non-renounceable entitlement offer
▪ 1 for 1 Entitlement Offer
▪ $0.05 per New Share
▪ 37.5% discount to the TERP of $0.08 or 53% discount to the one-month VWAP of $0.106.

Binding commitments have been received from five major shareholders to fully or partially take up their entitlements. The balance of the offer (to the extent not covered by the commitments) is underwritten by entities associated with Peter Maloney, CEO and Managing Director of AUCloud, Catherine Reid, Chair of
AUCloud, and NEXTDC.

Net proceeds of the Entitlement Offer will predominantly fund working capital requirements associated with executing the Company’s initiatives identified in the recent Strategic Review.
 
And yet ... And yet
Screenshot_20230720-090949_CommSec.jpg


Screenshot_20230720-090907_Drive.jpg
 
Dona Ferentes said:
And yet ... And yet
Click to expand...
nothing to see here; holding on the the spurt. There was mention elsewhere in cyberworld about SOV utility, but I can't remember the context.

& what a beauty for the July comp, if only. Drat n doubledrat.
Screenshot_20230722-115953_CommSec~2.jpg


.... and this crowd would be miffed
Screenshot_20230722-121708_CommSec.jpg
 
hop on the bus, hop off the bus.

Screenshot_20231104-210703_CommSec.jpg


The Company completed a 1 for 1 non-renounceable rights issue at an offer price of 5 cents to raise approx. $8.2M net of transaction costs in June 2023.

With the completion of the sovereignty zones in Brisbane and Melbourne capital expenditure is expected to reduce in FY24, with the focus now on generating revenues from the capacity created by the previously deployed capital.

During FY23, AUCloud employee costs increased in the first half of the year, followed by reductions in the second half of the year post the incoming CEO’s strategic review. AUCloud will continue to align the cost base to the strategic direction.

The Board is conscious that AUCloud’s current cash reserves may prove to be inadequate given the cash burn rates that are expected to prevail in the short term, the Board expects it will need to raise new equity capital in the 2nd half of FY24.
 
Some years ago, before I changed industry niches, Infrastructure-as-a-Service was my area of expertise.

The startup I worked for was even going to go after the same market segment as SOV does today and we had plans to partner with Telstra to offer what SOV offers, I did several site visits to secure Tier 4 datacenters in and around Canberra.

I just took a look around on the AUCloud website and noticed in their technical docs that they just use VMware Cloud Director (VCD) as their IaaS technology.

VCD is extremely undifferentiated legacy tech at this point compared to what Amazon Web Services (AWS), Microsoft Azure and Google Cloud offer for IaaS and all 3 have government grade offerings. AWS can deliver a miniature datacenter to your door in a shipping container if you really want.

Additionally Broadcom (NYSE:AVGO) just acquired VMware and are following their usual modus operandi (stripping the business and milking the existing locked-in customer base https://www.silverliningsinfo.com/a...roadcom-milking-existing-vmware-customers-dry) so software costs for SOV are about to go up by a lot.
 
• Acquisitions total consideration of up to $30.0m comprising ~$18.275m cash on completion, $8.85m in AUCloud shares, $0.875m of deferred cash consideration payable 180 days after completion and up to $2.0m subject to achieving certain performance milestones
• PCG Cyber: Total purchase price of $15.0m, comprising $11.875m of cash consideration at completion, $2.5m worth of consideration shares (escrowed for 6 months from completion), and deferred cash consideration of $0.625m (180 days deferral) to satisfy completion adjustments and claims under the share purchase deed
• Venn IT: Total purchase price of $6.0m, comprising $3.075m of cash consideration at completion, $2.85m worth of consideration shares (escrowed for 24 months from completion), and deferred cash consideration of $0.075m (180 days deferral) to satisfy completion adjustments and claims under the share purchase deed. The share purchase deed also includes an earn out payment of up to $2.0m , subject to the target business achieving net revenue growth targets for the financial years ending 30 June 2025 and 30 June 2026
• Arado: Total purchase price of $7.0m, comprising $3.325m of cash consideration at completion, $3.5m worth of consideration shares (escrowed for 12 months from completion), and deferred cash consideration of $0.175m (180 days deferral) to satisfy completion adjustments and claims under the business and asset sale deed

Funding
• Acquisition consideration and associated costs to be funded by:
• A 2.95 for 1 pro-rata accelerated renounceable entitlement offer to raise up to $30.0 million and underwritten to $25.0 million
• AUCloud shares issued to vendors with a value of $8.85m (at price equal to the lower of the 14-day VWAP prior to completion and the offer price under the equity raising) (subject to shareholder approval at an EGM to be held in April 2024)
• Net proceeds of the Offer will be applied to funding of the Acquisition cash consideration, paying transaction costs and to provide working capital for MergeCo

Major shareholders and directors and their related entities
• NEXTDC (33.6%) has committed to subscribing for up to $12.6 million under the Offer, via taking up its full entitlement under the Institutional Entitlement Offer and sub-underwriting part of the Retail Offer
• In addition, the Company has received binding commitments from other directors including Chair, Cathie Reid and Managing Director and CEO, Peter Maloney to take up their entitlements either in full or in part or to sub-underwrite the Offer
 
looks like they got it away / got away with it

... completion of the retail shortfall bookbuild for the retail component of its 2.95 for 1 pro-rata accelerated renounceable entitlement offer of new SOV fully paid ordinary shares.

The Retail Bookbuild represents the final stage of the entitlement offer announced on 18 March 2024.

Subject to settlement, the Entitlement Offer is expected to have raised new funds of approximately $30 million.

Retail Bookbuild
Following the closure of the Retail Entitlement Offer, the Company had Retail Shortfall Shares of 206,099,125, representing $6,182,974.
The Retail Bookbuild cleared at the Offer Price of $0.03 per New Share.
Ineligible Shareholders or Eligible Retail Shareholders who renounced their Retail Entitlements will not receive any Retail Premium.

Screenshot_20240415-090709_CommSec.jpg
 
SOV is a VMware partner. My understanding is that the new 2Q24 restrictions on VMware licencing arrangements is potentially favorable to SOV revenue moving forwards.
 
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