- Payment security specialist Identitii (ID8) launches a $4 million rights issue to support its sales and marketing strategy and continued product development
- Under the offer, shareholders can subscribe for one share for every two already held at four cents — a 20 per cent discount to ID8’s closing price before the raise was announced
- CEO John Rayment and Chairman Tim Phillipps each plan to take up their full rights under the entitlement offer
- The funds will go towards further progressing ID8’s “One Platform” strategy to simplify its business and speed up product delivery time-to-market
- Shares in Identitii closed 15 per cent lower this afternoon at 3.4 cents per share
Payment security specialist Identitii (ID8) has launched a $4 million rights issue to support its sales and marketing strategy and continued product development.
The company announced the capital raise last week, offering shareholders one new share for every two shares already held at an offer price of four cents. This price represented a 20 per cent discount to ID8’s last closing price of five cents per share before the raise was announced.
Under the rights issue, eligible shareholders will also receive one free attaching option for every two shares applied for, exercisable at eight cents and expiring in two years.
Identitii CEO John Rayment said over the past several years, the company had been on a journey to overcome the challenges it faced in capitalising on the growing demand for its regulatory reporting platform.
“We are realising the results of that journey now, announcing a $3 million reduction in annualised costs last week and the benefits of several operational changes that are accelerating our transformation from a company that sells many products to few customers, to a product-led company that sells one platform to many customers,” Mr Rayment said.
“What we see from inside the business is a large and increasing demand for our AUSTRAC reporting platform and an increasing total addressable market as we validate demand in new jurisdictions.”
Mr Rayment and ID8 Chairman Tim Phillipps each plan to take up their full rights under the entitlement offer.
The funds raised will go towards further progressing ID8’s “One Platform” strategy as the business reduces complexity and enacts a new target operating model designed to speed up delivery and time-to-market without impacting current customer commitments.
The entitlement offer closes on December 6, with shares to be issued on December 13.
Shares in Identitii closed 15 per cent lower this afternoon at 3.4 cents per share.