Threat Protect secures $10.5m for acquisitions

03/11/2016 - 14:56

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Belmont-based security company Threat Protect Australia has locked in a $10.5 million funding package with a Melbourne-based wealth management business, to continue its growth plans.

Threat Protect secures $10.5m for acquisitions
Threat Protect managing director Demetrios Pynes.

Belmont-based security company Threat Protect Australia has locked in a $10.5 million funding package with a Melbourne-based wealth management business, to continue its growth plans.

Threat Protect has attracted existing shareholder First Samuel for a $1.5 million share placement, priced at 3 cents per share.

The price represents a 69 per cent premium to the company’s 30-day volume-weighted average price.

First Samuel will also subscribe for 9 million convertible notes at $1 each, to raise a further $9 million.

As the raising will be carried out in tranches, First Samuel will hold at least a 5.8 per cent stake in the company post-raising, and up to 33.9 per cent if all tranches are successful and all of the notes are converted into ordinary shares.

“We are very pleased to have secured a substantial funding package at a significant premium to our share price that provides the company with readily available finance for future expansion,” Threat Protect managing director Demetrios Pynes said.

“First Samuel has been a Threat Protect shareholder since February and is an established value investor in the Australian monitored security sector.”

First Samuel chief investment officer Dennison Hambling said the company and its clients looked forward to seeing Threat Protect execute its growth plans over the coming years.

Threat Protect began trading on the ASX in September last year, after completing a backdoor listing of East Africa Resources.

Since listing, the company has made six acquisitions and is in the process of conducting due diligence on several more opportunities.

Threat Protect shares closed unchanged at 2 cents each.

 

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