Anti-malware Votiro set to move forward following Senetas’ $5 million capital raise
Special Report: Senetas has its eyes firmly on the malware target, attracting significant investment to its wholly-owned subsidiary Votiro through a placement and entitlement offer.
Senetas (ASX:SEN) , a prominent global player in the encryption and cybersecurity industry, says that between the two approaches, the company has successfully completed a capital raise of $5 million.
The financial infusion is earmarked to bolster the growth of its cybersecurity portfolio, with a focus on advancing the operations of its high-growth subsidiary, Votiro, renowned for its pioneering anti-malware content disarm technologies.
The capital raise, which included both an entitlement offer and additional placement, was partially underwritten, with a notable portion of the funds being committed by entities closely associated with Senetas’ leadership team.
This move underscores a robust vote of confidence from within the company regarding its strategic direction and future growth prospects.
With the fresh capital at hand, Senetas is poised to accelerate Votiro’s expansion, leveraging its increasingly robust sales pipeline.
Votiro has already demonstrated remarkable growth, doubling its sales pipeline during the financial year 2023 and adding US$10 million in the first half of the year alone.
The company aims to significantly boost its annual recurring revenue, with ambitious targets set for the near future.
Votiro specialises in neutralising potential cyber threats through advanced content disarm technologies, differentiating itself from Senetas’ focus on encryption technologies.
This strategic diversification into cutting-edge cybersecurity solutions is timely, responding to the growing global demand for innovative approaches to counteract malware and ransomware attacks.
As part of the capital raise strategy, Senetas announced an entitlement offer aimed at raising up to A$3.5 million, which was priced attractively to encourage participation from eligible Australian and New Zealand shareholders.
This was complemented by securing an additional A$1.5 million through placements to institutional and sophisticated investors.
The funds are intended not only to propel Votiro’s business development but also to strengthen Senetas’s overall working capital, highlighting the company’s commitment to diversifying its portfolio and embracing growth opportunities within the cybersecurity domain.
The initiative received substantial backing, with A$2.05 million of the target amount being underwritten, signifying strong support from entities linked to the company’s executive circle, including Southbank Capital Pty Ltd and MST Financial Services Pty Limited.
This level of endorsement from the company’s directors and associated entities reflects a deep-seated belief in Senetas’s strategic roadmap and its potential for future success.
Senetas embarks on a new phase of growth in 2024. With Votiro’s solutions addressing a broader market, and Senetas’s traditional offerings remaining an industry-leading standard in the Defence and Government sectors, the company looks to make a significant step forward in the cybersecurity space.
This article was developed in collaboration with Senetas Corporation, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.