Excite Technology Services has secured binding commitments from sophisticated and institutional investors to raise AUD $2.8 million through a single tranche placement of new shares, with funds to be used for organic growth initiatives in cyber security and training.
Following a strong March quarter performance, Excite states that the capital raised will be utilised to accelerate revenue opportunities, focusing particularly on the company's strategic advantages in the market.
The allocation of funds includes investment in CBIT's Nangu Tactical Centre, which will be equipped with digital forensics training equipment to support the implementation of advanced training courses for Defence and State Law Enforcement. The company expects these efforts to be highly accretive within the next 12 months.
Excite's offensive security services operations will also be supported with this raise, reflecting expectations that new sales initiatives will be secured in the coming quarter.
The company indicated that it is continuing to evaluate several acquisition opportunities, which are aimed at strengthening cross-sell capabilities, increasing customer engagement, and delivering EBITDA accretion.
Excite Managing Director and Chief Executive Officer, Bryan Saba, said: "The funds will enhance our core capabilities in digital forensics, cyber training, and offensive security whilst directly supporting revenue-generating opportunities already in play. We're building momentum across defence, government and critical infrastructure sectors, and this investment accelerates our ability to scale and deliver nationally significant outcomes."
The new investments form part of Excite's mission to develop as a national provider in cyber security and digital forensics. The company aims to deliver high-margin recurring revenues through ongoing government contracts while expanding its commercial cyber security capability.
To complete the placement, Excite will issue approximately 233 million new fully paid ordinary shares to eligible sophisticated and institutional investors at a price of AUD $0.012 per new share. The issue price represents a 9.1% premium to the previous closing price of Excite's fully paid ordinary shares.
The placement will be conducted through a single tranche under the company's available placement capacity, equating to 12.8% of existing shares on issue.
Within the capital raise, AUD $1.12 million will be invested strategically in the company's tactical training facility. AUD $700,000 is earmarked for the development of the company's Offensive Security Services capability, working closely with Excite's existing cyber security consultants. A further AUD $800,000 will be directed to general working capital in support of high-profile tender activities, and approximately AUD $168,000 will cover the costs of the capital raising process.
The Nangu Tactical Centre, considered the first cyber and digital forensics tactical training centre in the Asia-Pacific region, is highlighted as a flagship project intended to enhance Australia's sovereign capability in cyber security, digital forensics, and incident response. The centre, which has also received a AUD $3 million federal grant awarded to Excite's subsidiary CBIT, will provide immersive, real-world training for Defence, Government, and State Law Enforcement agencies.
The planned facilities at the centre include a mock courtroom, ISO-accredited digital forensics laboratories, a protective security zone, and scenario-based incident response arenas. Excite notes that the centre aims to address the cyber skills gap and become a significant hub for advanced practitioner education in the region.
According to Excite, the strategic location of the centre near Canberra, combined with its ability to replicate complex cyber operations and legal processes, positions the company as a national player in digital security. Collaboration with government agencies, industry, and academic partners supports the objective of delivering programmes for over 800 students annually.
Shaw and Partners acted as the lead managers and bookrunners for the placement.
