Cipherpoint (ASX:CPT) launches partially underwritten $2.3M entitlement offer

• Cipherpoint (CPT) has launched a partially underwritten one-for-two entitlement offer to raise approximately $2.3 million
• The data protection solutions provider will offer new shares at 4.8 cents, a 17.7 per cent discount to the 15-day volume-weighted average price
• The first $1.25 million of the offer is underwritten by Viriathus Capital
• The company says the funds will be used to accelerate strategic priorities and invest in next generation technology
• Additionally, Cipherpoint claims the new capital will position its to capitalise on data security market tailwinds and consider potential acquisitions
• CPT shares closed 17.9 per cent lower at 5.5 cents

Data protection solutions provider Cipherpoint (CPT) has seen nearly an 18 per cent drop in its share price after launching a one-for-two entitlement offer.

The company hopes to raise up to $2.321 million and the first $1.25 million is underwritten by Viriathus Capital.

Eligible shareholders in Australia and New Zealand will be able to subscribe for up to $30,000 of new shares at 4.8 cents. This issue price represents a 17.7 per cent discount to the 15-day volume-weighted average price (VWAP) of 5.8 cents.

Cipherpoint has noted the funds are earmarked for investment in next-generation technology and the acceleration of key strategic priorities.

Additionally, Cipherpoint claims the new capital will strengthen its balance sheet and position to capitalise on data security market tailwinds, including considering appropriate acquisitions.

CPT shares closed 17.9 per cent lower at 5.5 cents.