• Senetas Corporation (ASX: SEN) announces a capital raise of up to A$5 million to support the growth of its cybersecurity portfolio
  • The capital raise is partially underwritten with significant commitments from entities associated with Senetas’ leadership
  • Funds raised will accelerate Votiro’s growth, capitalising on expanding sales and targeting increases in annual recurring revenue


Senetas (ASX:SEN) , an ASX-listed leader in encryption and cybersecurity solutions, has a $5 million capital raise to seize growth opportunities in the cybersecurity sector.

The raise signals a strategic pivot. The company now turns to expanding its market reach and the development of its subsidiary Votiro, a distinctly different cybersecurity venture from its encryption-focused parent company and a key part of Senetas’s portfolio.

Senetas specialises in encryption technologies that act as a fail-safe for data, while Votiro focuses on anti malware content disarm technologies that neutralise any malicious code in documents before they can even reach a user’s inbox.

Votiro’s potential is clear, with an impressive sales pipeline, which more than doubled during the 2023 financial year. The company has added US$10 million to its pipeline in the first half of 2023 alone and is targeting annual recurring revenue of up to US$10 million by year-end.

As of September 2023, Votiro has already achieved a 60% increase in annual recurring revenue since the previous year. Its performance is a testament to the burgeoning demand for more modern and advanced cybersecurity solutions, particularly those that can effectively prevent malware and ransomware attacks.


A strategic capital raise

The company plans to raise up to $3.5 million through a partially underwritten non-renounceable pro rata entitlement offer to eligible Australian and New Zealand shareholders. The offer is priced at $0.014 per share, with shareholders entitled to 1 new share for every 4.86 shares held. In addition, for every 3 new shares subscribed, shareholders will receive 1 option, exercisable at $0.025 per share, valid for 12 months.

Complementing this, Senetas has secured commitments for an additional $1.5 million through a placement to institutional and sophisticated investors. These funds are earmarked for accelerating the development of Votiro’s business and bolstering general working capital, a strategic move for Senetas as it diversifies its portfolio.


Director commitment and partial underwriting

This capital raise is partially underwritten, with commitments already in place for $2.05 million of the target amount.

Notably, entities closely associated with the company’s leadership, including Southbank Capital (linked to Senetas chairman, Francis Galbally) and MST Financial Services, are co-underwriters. The directors’ decision to participate in the offer, either through entitlement take-up or sub-underwriting, reflects their confidence in the company’s strategic direction.


Growth through diversity

Votiro’s anti-malware and ransomware solutions represent a significant opportunity, with a larger addressable market than Senetas’s traditional encryption offerings.

Senetas’ decision to undertake this capital raise is a calculated step to capitalise on recent growth in the cybersecurity sector. For investors and shareholders, this represents a unique opportunity to be part of a pivotal growth phase in a company at the forefront of cybersecurity innovation. The offer is due to close on 15 December 2023.


This article was developed in collaboration with Senetas, 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.