Tech: Netlinkz inks deal with Beijing policymakers to help fight coronavirus
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Global markets edged lower overnight as fears continue to linger about the true extent of the coronavirus outbreak in China.
With multiple Chinese cities in lockdown, software company Netlinkz (ASX:NET) is hoping that its secure-networking technology can be used to help more people work remotely.
The company announced this morning that its iLinkAll platform had been selected by the Beijing municipal government, to provide remote information-sharing services as part of a coordinated effort to contain the virus.
The iLinkAll software — in which Netlinkz owns an 80 per cent stake — will be used to help “medium-sized companies and their professional workers remotely log into their office, to help get those businesses back to work”, Netlinkz executive chairman James Tsiolis said.
Accompanying the announcement, Netlinkz said it had also completed a $4.5m offering to sophisticated and professional investors at 6.5c per share, in a placement led by EverBlu Capital.
The aim of the raise was to provide a capital buffer for an “anticipated escalation in sales” of iLinkAll’s virtual secure network (VSN) platform.
Netlinkz said the bulk of the funds raised would go towards engineering support services, marketing expenses, and logistical costs associated with a wider software rollout.
“With so many people being forced to work from home we anticipate that our product will be widely used by both businesses and individuals,” said Zen Wang, an executive at iSoftStone which owns a 20 per cent stake in iLinkAll.
Tsiolis added that the company’s status as a chosen software provider of the Beijing government would deliver increased visibility for its secure-networking services across other Chinese markets.
Shares in Netlinks climbed by around 4 per cent at the opening bell, before edging slightly lower in morning trade.