Tesserent Limited (ASX: TNT) provides services related to enterprise-grade managed cybersecurity to corporate customers globally and in Australia. It also has networking services. With an uninterrupted Security and Network Operations Centre, the company provides world-class quality Security-as-a-Service to medium and large organisations’ globally. With a next-generation end-to-end security and networking offer, Tesserent customers obtain state-of-the-art security and connectivity and complete peace of mind that their critical data and networks are secured and protected.
Tesserent raises a further $565,000 following strong demand from investors on the back of the company’s oversubscribed capital raising earlier in March 2019.
The company today, on 29 March 2019, announced that it has successfully raised capital of $565,000. The funds will be utilised to accelerate several acquisition opportunities in the cybersecurity space. It also announced a change in the interest of the substantial holder ‘Grand Floridian PTY Limited’ with a change of voting power from a previous 13.3% to 12.0% currently.
The company made a private placement of 11.3 million shares, which was priced at $0.05 per ordinary share, 11% discount to the five-day VWAP. The participating shareholders in the capital raising received one 12-month call option, which can be exercised at $0.05 for each ordinary share. The placement was supported by several existing shareholders and new sophisticated investors as well.
The company recently announced that they have successfully raised $1.1 million by way of private placement, following which they did further capital raising via private placement. In the calendar year to date, Tesserent has raised a total of $2.25 million.
Tesserent’s accelerated growth strategy will be supported by the new placement with several acquisitions being actively negotiated by the company. Moreover, the company is aggressively pursuing due diligence on these acquisition opportunities, while supporting growth in the core business as the new customers are continuing to adopt Tesserent’s artificial intelligence platforms.
The company has a vision to become operationally cash flow positive going forward during FY19, and for its successful implementation, it is adhering to a significant restructuring process through the capital raising program and acquisition strategies.
The CEO of the company, Julian Challingsworth said that the company has been able to raise additional funds to support the business as it accelerates its acquisition focused growth strategy after significant interest from investors. The company is pleased as its strategy, and recent initiatives have been supported by the market. The funds raised will allow the company to move quickly in exploring and executing on the high-value opportunities that it has identified in the security space.
The company also advised that the acquisition of end-to-end IT services provider Asta has been stopped. Tesserent decided to place the transaction on hold since it has several acquisition opportunities in the pipeline, however, there is a potential to revisit this opportunity in H2 CY19.
On the price-performance front, the stock of Tesserent Limited traded at $0.053, a decrease of ~3.63% during the day’s trade, with a market capitalisation of ~$9.17 million (At market close on 29 March 2019). The stock has generated a negative YTD return of 3.51% and generated negative returns of 17.91% and 26.67% over the past six months and one-month period, respectively. Its 52-week high price stands at $0.120, and 52-week low price stands at $0.045 with an average trading volume of 320,877.
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