Secure collaboration company archTIS has completed a A$7.5 million capital raising through a share placement to fund United States expansion and product development initiatives.
The placement involved issuing 50 million new shares at A$0.15 each to institutional and sophisticated investors, representing a 17.4 per cent discount to the seven-day volume-weighted average price and 15.5 per cent discount to the fourteen-day average.
A share placement allows companies to raise capital by issuing new shares directly to selected investors at a predetermined price, typically below current market rate to ensure strong uptake.
Unlike rights issues that offer shares to existing shareholders, placements target institutional investors and high-net-worth individuals who can commit substantial amounts quickly.
The Melbourne-based firm provides data-centric software solutions enabling secure collaboration of sensitive information, particularly for government and defence organisations requiring stringent security protocols.
archTIS will allocate the proceeds across three strategic priorities: A$3 million for US market expansion, A$1.5 million for strategic partnerships, and A$3 million for product development.
The US expansion funding will support internal delivery teams and client support infrastructure, including onboarding automation systems and customer health analytics platforms designed to improve post-sales processes.
Partnership investment will aim to deepen existing alliances whilst establishing new collaborative relationships, supported by enhanced management systems and co-marketing initiatives.
Meanwhile, product development resources will advance enterprise-focused capabilities whilst accelerating research into data analytics, artificial intelligence insights and automation processes.
"This capital raise marks a pivotal step forward in executing our strategic international expansion and revenue growth plans," Daniel Lai, archTIS managing director and chief executive, said.
"The funds raised will enable us to scale our US operations, strengthen our existing strategic partnerships, and accelerate product development and innovation to meet the evolving, stringent security needs of enterprise and government clients."
The company emphasises that proceeds are aimed at strengthening go-to-market capabilities through expanded delivery capacity and enhanced support infrastructure to capitalise on growing demand for secure data-sharing platforms.
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