WhiteHawk Limited (ASX: WHK), domiciled in Perth, Australia, provides cyber risk advisory service. It provides a cloud-based cybersecurity exchange platform delivering Artificial Intelligence Cyber Risk Profile to small and medium enterprises. It offers an online cybersecurity exchange helping companies and organisations to decide, discover and purchase cybersecurity solutions on their own to directly mitigate their key cyber business risks. This platform enables customers to find the best cyber tools, relevant stories, and contents through its expertise and algorithms to improve and stay ahead of today’s cyber threats. It also helps companies to fill their ongoing needs with demonstrated cost and time savings. Today, it is catering to US companies to connect to content, solutions and service providers through its rich data and user expertise.
On 31 January 2019, the company announced to raise A$1.2 million before cost through the placement of 18.5 million shares to an institutional investor, RiverFort Global Opportunities PPC Ltd (RiverFort). The shares will be issued at 6.5 cents per share, a discount of 2.99% as compared to the price of 30 January 2019.
RiverFort is a UK-based Institutional Investment Manager providing detailed and innovative growth funding solutions to publicly listed as well as private companies.
The funds will be used for the Equity Swap of A$800,000 with RiverFort as a way of a net set off and for funding working capital by A$400,000 to support an additional 360 Cyber Risk Review Contracts. The Swap is expected to have a term period of 12 months which can be extended or settled earlier. Under the Swap, WHK will receive A$66,666.667 each month (representing 1/12 of A$800,000) in addition to an amount representing a 50% of the difference between 7.15 cents, i.e. the benchmark price, and the market price. The market price will be determined on an aggregate of 10 daily volume weighted average prices in that month.
Today, WHK has provided an update over the placement under which it has reduced the amount of the placement as well as the value of the equity swap after discussions with the ASX. Under the new terms, WHK will now raise A$1.05 million before costs by issuing 16.15 million shares at the same price (6.5 cents per share), and the equity swap value has reduced to A$700,000.
Under the Equity Swap Agreement, the terms are same, but the amount has changed to A$58,333.333/ month, i.e. 1/12 of A$700,000 which is repayable by Riverfort over 12 months, that can be extended to 18 months. The calculation of market price has also changed to the numeric average of the 10 lowest volume weighted average prices in that month.
There is no underwriter to the issue. However, a 5% placement fee and a fee to Viaticus Capital LLC, an advisor to WHK, of 1% is payable on the whole transaction.
The WHK’s stock is currently trading at A$0.066 (as on 05 February 2019, 03:38 pm AEST) with a fall of 2.941% or A$0.002 during the day’s performance.
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