archTIS Targets $20.5M Capital Raise Including $17M Retail Entitlement Offer

Capital Raising to Fuel US Expansion

archTIS Limited (ASX, AR9) has officially commenced the retail tranche of its fully underwritten accelerated non-renounceable entitlement offer, priced at $0.15 per share. This retail offer forms part of a broader $20.5 million capital raising package, which includes a $3.5 million placement to institutional investors. The proceeds are earmarked primarily to fund the acquisition of Spirion LLC’s business assets, alongside employee incentives, marketing, technology development, integration costs, and working capital.

Strategic Acquisition of Spirion LLC

The acquisition of Spirion, a US-based leader in sensitive data discovery, classification, and remediation, represents a significant strategic milestone for archTIS. Spirion brings a blue-chip customer base spanning financial services, healthcare, education, and government sectors, with over 150 enterprise clients and approximately $17 million in annual recurring revenue (ARR). This deal is expected to materially increase archTIS’s scale and accelerate its penetration into the US market, complementing its existing attribute-based access control (ABAC) cybersecurity solutions.

Offer Details and Shareholder Participation

Eligible retail shareholders as of the record date on 29 August 2025 are invited to subscribe for one new share for every three shares held. Additionally, shareholders who fully subscribe to their entitlement may apply for additional shares through a retail shortfall facility, capped at 100% of their entitlement. The offer is non-renounceable, meaning entitlements cannot be traded or transferred. The retail offer closes on 11 September 2025, with shares expected to be issued shortly thereafter.

Underwriting and Management Commentary

The entitlement offer is fully underwritten by Canaccord Genuity and Henslow Pty Ltd, who also act as joint lead managers. archTIS’s CEO Daniel Lai highlighted the transformational nature of the acquisition, emphasizing the complementary technology and expanded customer base that Spirion brings. He noted that the combined entity will offer a comprehensive zero-trust data-centric security platform, enhancing archTIS’s ability to serve government and enterprise clients globally.

Risks and Forward Outlook

While the acquisition and capital raising position archTIS for accelerated growth, the company acknowledges inherent risks including acquisition completion, integration challenges, market competition, and regulatory compliance. The company’s forward-looking statements caution investors about uncertainties that could impact future performance. Nonetheless, the expanded ARR profile and US market presence provide a strong foundation for growth in a rapidly evolving cybersecurity landscape.