Security Company archTIS Launches $10m ASX Float


By Liz Foreman Flickr

Madelin Hayes, Business Journalist

Canberra-based security firm, archTIS has launched a $10 million Initial Public Offering (IPO) ahead of an ASX listing.  ArchTIS issued 40,000,000 shares at 20c each to raise $8 million in the IPO. In addition, the company may accept over subscribers of up to a further $2 million.

Founder Bruce Talbot created the company in 2005 with the mission of sharing top secret information without running the risk of it falling into the wrong hands.

Initially, the company was a safe sharing platform for Australian and American governments to host and discuss classified information.

Currently, archTIS provides security consulting to the federal government and offers the service of sharing private and top secret information securely.

According to CEO of the company, Daniel Lai, the timing of the IPO was placed at an ideal time as “market demand has been steady growing for products and services that solve the challenge of secure information sharing and collaboration. “

The firm has a vision of becoming “the company that the world trusts with its most valuable information.”

ArchTIS is stepping forward in hopes to achieve this vision with the $2 million of capital to be raised for project development, the remaining funds will go towards archTIS key projects, DataKloak and Kojensi.

The key project, Kojensi was “initially developed for the ADF, to secure information and to enable information sharing”, says Lai.

Why should anyone invest in archTIS?

According to Lai, archTIS is one of the few companies to have built a solution accredited to hold “TOP SECRET” data that is shared between the US and Australian Governments. ArchTIS personnel also hold appropriate security clearances (proving to be a major barrier to entry to work within the defence, government and intelligence communities.

What are the risks of investment?

According to the company prospectus issued on the ASX, archTIS has struggled to locate “appropriately skilled resources” in Canberra and has therefore moved to further investment opportunities in Prague, where sufficient resources could be located. An Intellectual property risk has also been raised from the prospectus, highlighting the issue of further pending applications not being granted in the future. In its current state, archTIS has a granted Australian Innovation Patent.

In December of 2017, archTIS generated $131,000 in revenue, with a reported loss of $934,000.