WhiteHawk’s Shares Surged Over 23% Post New Contract Announcement

Today, on 3rd May 2019, artificial intelligence-driven cyber risk mitigation company, WhiteHawk Limited (ASX:WHK) announced an additional new U.S. Federal Government contract to support another large government department through the Chief Information Officer (CIO). This will be WhiteHawk’s third U.S. Federal Government Department contract in the past six months. The group will work as a sub-contractor to Reston, Virginia headquartered company that will serve as the primary contractor in this contract. Reston has over 23k employees, and it provides technology integration services to the United States Defense, Intelligence Community, Federal Civilian and Space agencies, which includes high-end solutions in enterprise IT, systems engineering and integration, software, cyber, advanced analytics and simulation and training.

This will be the company's seven-year contract with one base year and six option years, where the group will utilise its Cyber Risk Management Framework capabilities to provide expert support for Cyber Risk Management, Executive Technical Services (Architecture & Engineering), and Project Management. Additionally, the company will provide sensitive risk mitigation and risk analytics services, which are required to add a protection shield to a breadth of office and mission functions. The scope of this contract provides technical and management oversight to mission responsiveness, performance, supply/procurement management, and risk management functional areas across all the Chief Information Officer’s information technology contracts.

The contract is expected to commence mid of the month, with customer evaluation for optional expansion and extension after a base year. The contract is valued at US$28 million (~A$40 million), where WhiteHawk’s portion is expected to be between US$150K to US$300K (~A$214K to A$428K) for each year. Other than this, any future expansion by the United States Government may increase the duration of WHK’s services as per the requirement.

Executive Chair of WhiteHawk, Terry Roberts stated that they are looking forward to being a part of a forward-leaning team of innovators to refine and take to the next level an important United States Government’s Chief Information Officer resilience architecture and strategy. Mr Robert further added that this contract has given a tremendous boost to WHK’s team to have a further impact across the cyber risk landscape of the United States Insurance, Defense Industrial Base, Utility and Financial sectors.

On 1st May 2019, WHK announced its new sub-contractor role for U.S. Federal Government Department contract valued at US$2 billion for five years. For this contract, Arlington, which is a Virginia based company was appointed to serve as the primary contractor. Under the agreement, WHK in collaboration with Arlington will provide an enterprise-wide cyber intelligence, cyber risk mgmt. framework and innovative transition along with its tailored cyber subject matter expertise.

On the stock information front, at market close on 3rd May 2019, the stock of WhiteHawk Limited was trading at $0.110, up 23.596% with a market capitalisation of $11.28 million. Today, it touched day’s high at $0.125 and day’s low at $0.100, with a daily volume of 21,326,555. Its 52 weeks high price stands at $0.125 and 52 weeks low at $0.039, with an average volume of 896,587. Its absolute returns for the past one year, six months and three months are -2.36%, 117.5%, and 33.85%, respectively.

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