Cloud-based cyber security exchange provider WhiteHawk (ASX:WHK) has won a sub-contracting role on a purported $2.8 billion US government project, but it can’t say who it is with — yet.

WhiteHawk shares rose to a three-month high of 8.1c on the news, a 27 per cent gain. In November last year they nearly tripled when the the company revealed it was providing its 360 Cyber Risk Framework service to various US government departments to beef up defences against attacks on their supply chains.


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This new sub-contract, unrelated to that deal, will see WhiteHawk provide an enterprise-wide cyber risk management framework to the primary contractor, currently unnamed but based in Virginia. The entire contract is worth about $2.8 billion, WhiteHawk says, and is supporting a large federal government department through the chief information officer.

The primary contractor is described as a “leading global professional services company” that has “served every cabinet-level department and 30 of the largest federal organisations with clients in defence, intelligence, public safety, civilian and military health organisations”.

WhiteHawk will start providing services to the primary contractor immediately. The contract is for one year, with the option to extend it for a further four years.

WhiteHawk says first-year revenue will be up to $851,000, increasing to up to $4.3 million a year if the contract is extended.

The names of both the government department and primary contractor are not top secret, but the parties had not consented to their names being revealed by the time WhiteHawk made the announcement to market. WhiteHawk says it is “forthcoming”, pending customer approval.

“We are honoured to be part of the cutting-edge team that will architect, innovate and further transition a US federal government CIO office to be commercially enabled, using best of breed CIO and chief information security officer (CISO) solutions and services that are foundational to every department mission,” Terry Roberts, chairman of WhiteHawk, told investors.


In other ASX tech news this morning

Cycling tech company Cycliq (ASX:CYQ) on road to recovery. After a bumpy journey Cycliq, whose shares are languishing at three-tenths of a cent, is showing signs of recovery. It announced late yesterday that its three-quarter year-to-date loss of $1.9 million was a 38 per cent improvement on a year ago, while its negative cash flow of $1.2m was a 54 per cent improvement.


Aquabotix (ASX:UUV) trying everything to keep its head above water. Aquabotix, maker of underwater drones for defence purposes, including this phallic-looking product, has just $215,470 in the bank at the moment. It updated investors in its quarterly on efforts to improve its financials, including a reduction in spending, a review of its cost base and the launch of a capital raise in order to boost its bank by a tick under a million dollars.


Simavita (ASX:SVA) also on the ropes. The medtech company had $417,000 in the bank at the end of the March quarter, but says it is “close to completing a financing event” which will need to be approved by shareholders at a special general meeting.

“The company expects to have negative operating cash flows for the time being but it should be noted that the company continues to enjoy the support of its major shareholders. If required, the company will raise additional cash to fund operations and to meet its business objectives,” it told investors.