Tesserent Limited (ASX: TNT) stated that it has successfully facilitated an on-market sale of all tradeable shares held by the Company’s former CEO Keith Glennan. These shares amounted to 4 million shares out of the total holding of 20 million shares held by Mr Glennan’s family trust, Grand Floridian Pty Ltd, prior to the sale.
The company stated that all the remaining shares held by Mr Glennan are covered by an option held by Belgravia Strategic Equities Pty Ltd and these are unable to be sold.
Robert Langford, Chairman of Tesserent said: “The Company is building a highly credible share register to drive support and growth for its long-term vision. The company is pleased to have the support of new and existing shareholders who are continuing to show their confidence in Tesserent’s aggressive acquisition and growth strategy. Tesserent is looking forward to achieving the next stage of growth as it builds on recent momentum and executes on the high-value opportunities it has identified in the security space.”
Tesserent recently completed a successful capital raising of $565,000 via a private placement of 11.3 million shares priced at $0.05c per ordinary share, representing an 11% discount to the five-day VWAP. It underscores the strong demand from investors as the capital raising of $565,000 follows the oversubscribed capital raising of $1.1 million by way of private placement earlier in March 2019. Those who participated in the raising also received one 12-month call option exercisable at $0.05 for each ordinary share, as per the company’s information.
The new placement will reportedly support Tesserent’s accelerated growth strategy, with numerous acquisitions being actively negotiated. Currently, the company is rigorously undertaking the due diligence on acquisition opportunities while supporting growth in the core business as its artificial intelligence platforms continue to be adopted by new customers.
The capital raising program and acquisition strategy is part of a significant restructuring process being undertaken by Tesserent, with the intent to become operationally cash flow positive going forward during FY19.
The management believes that the proceeds from the capital raising program would allow the company to ramp up its initiatives towards the execution and exploration of the high-value opportunities in the security space.
Further, the acquisition of information technology services provider ‘Asta’ has been placed at a halt. With numerous acquisition opportunities in the pipeline, Tesserent made the decision to place the transaction on hold with the potential to revisit it in H2 CY19.
ASX-listed Tesserent Limited is an information technology company focused on providing networking and cybersecurity services to corporate level customers across Australia and internationally in the UK and Korea. It primarily offers the world-class Security-as-a-Service to global organisations through its 24/7 Security and Network Operations Centre.
In today’s trading session, TNT stock price surged up by 10% to last trade at $0.055 on 15 April 2019. The company’s market capitalisation stands at $8.9 million.
Over the past 12 months, the stock has declined by 43.82% including a negative price change of 10.71% in the past three months.