ARCHTIS LIMITED — Capital/Financing Update 2021

Nov 11, 2021

==> picture [156 x 32] intentionally omitted <==

12 November 2021

archTIS Announces Placement and SPP to Raise up to AU$8 Million to Accelerate Growth Initiatives

Highlights:

• Strong demand from both domestic and international institutions as well as sophisticated investors secures firm commitments in a Placement to raise $6.5 million at $0.23 per Share.

• Existing shareholders are invited to participate in a $1.5 million Share Purchase Plan (SPP) on the same terms as the Placement.

• Placement and SPP participants will receive one free-attaching unlisted option (exercisable at $0.35, expiring 2 years from the date of issue) for every three Shares received under the Placement or SPP.

• Funds will be used to expand archTIS’ product offering and geographic reach into key markets in the US and UK, to continue to execute on M&A strategy and build on an existing relationship with Microsoft through IP Co-sell opportunities.

archTIS Limited (ASX:AR9, OTCQB:ARHLF) (archTIS or the Company), a global provider of innovative software solutions for the secure collaboration of sensitive information, is pleased to announce it has received firm commitments for a placement of 28,260,870 fully paid ordinary shares in the Company ( Shares ) to both domestic and international institutions and sophisticated investors to raise a total of $6.5 million, at an issue price of $0.23 per Share ( Placement ).

The Company will also offer all eligible shareholders in Australia and New Zealand the opportunity to participate in a SPP to raise up to a further $1.5 million on the same terms as the Placement. Eligible Shareholders are those holders of Shares with an address in Australia or New Zealand on the Company’s share register on the Record Date, being 7:00pm (AEST) on Thursday, 11 November 2021. Further information regarding the SPP will be set out in the SPP prospectus to be lodged on or around 18 November 2021.

Participants in the Placement and SPP will also be entitled to receive one option to acquire a Share (exercisable at $0.35, expiring 2 years from the date of issue) for every three Shares received under the Placement or SPP.

The Placement Shares, Placement Options, and SPP Options will be issued out of the Company’s available placement capacity under ASX Listing Rules 7.1 and 7.1A, with Placement Shares expected to be issued on 17 November 2021, and the Placement Options to be issued as soon as practical thereafter. The SPP Shares will be issued under the exception in ASX Listing Rule 7.2, exception 5.

The issue price for the Placement and SPP of $0.23 per Share represents a 13.2% discount to the last closing price on the ASX on 9 November 2021.

==> picture [156 x 32] intentionally omitted <==

Funds raised will be used to:

• Leverage prior success with the Australian Department of Defence through the launching and introduction of Kojensi into key regional markets of US FED and the UK;

• Continue to explore and execute on a proven M&A strategy that drives product, customer and geographical expansion toward greater ARR; and

• Build pipeline and close opportunities in conjunction with the Microsoft field through IP Cosell across Defence and other regulated industries.

amicaa Advisors acted as Lead Manager & Bookrunner for the Placement. amicaa Advisors will receive a capital raising fee of 6% on all funds raised under the Placement (plus GST).

Daniel Lai, archTIS Managing Director and CEO, said: “We were pleased to see such strong demand from domestic and international institutions following our recent decision to be quoted on the OTCQB Market. A diversified shareholder base bolsters our strategic efforts to scale our information security technologies in the US and globally.”

Lai continued, “By expanding our market reach with Kojensi, NC Protect and cp. Protect, we expect to leverage our success with Australian Defence in other geographical regions and accelerate pipeline through our alliance with Microsoft IP Co-sell. archTIS is now well placed to execute on our global product and sales strategy.”

-ENDS-

Authorised for issue by order of the Board of Directors.

About archTIS Limited

archTIS Limited (ASX:AR9, OTCQB:ARHLF) is a global provider of innovative software solutions for the secure collaboration of sensitive information. The Company’s award-winning data-centric information security solutions protect the world’s most sensitive content in government, defence, supply chain, enterprises and regulated industries through attribute-based access and control (ABAC) policies. archTIS products include Kojensi, a multi-government certified platform for the secure access, sharing and collaboration of sensitive and classified information; and NC Protect and the cp. suite of products for enhanced information protection for file access and sharing, messaging and emailing of sensitive and classified content across Microsoft 365 apps, Dropbox, Nutanix Files and Windows file shares. For more information, please visit archtis.com or follow @arch_tis on Twitter.

For further information please contact:

Company enquiries	Company enquiries
		Irena Mroz
Daniel Lai		CMO, archTIS
Managing Director, archTIS		E:irena.mroz@archtis.com
E:	investors@archtis.com
AU Investor Relations and Media enquiries		US Investor Relations and Media enquiries
Media & Capital Partners		Viriathus Capital
E:	archtis@mcpartners.com.au	E:beverly.jedynak@viriathus.com

archTIS Limited | ACN 123 098 671 | 10 National Circuit, Barton, ACT 2600