- c y b e r s e c u r i t y - i n f o r m a t i o n s h a ...€¦ · archtis investor presentation...

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- C Y B E R S E C U R I T Y -- I N F O R M A T I O N S H A R I N G -

- C O L L A B O R A T I O N -

IPO INVESTOR PRESENTATION – JULY 2018

archTIS INVESTOR PRESENTATION – JULY 2018

D I S C L A I M E R

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No Warranties

This Information Memorandum/Presentation contains material provided to archTIS Ltd ACN 123 098 671 (“archTIS”) by various sources. No representation or warranty is made or should be implied as to the

accuracy or completeness of the material contained herein and no responsibility or liability will be accepted by archTIS or its directors for any loss or damage, howsoever arising, which results from an action or

reliance in whole or in part on such material. The information in this Information Memorandum is not complete and may be changed. In particular, various contracts referred to in this Information Memorandum

have not yet been executed. Prospective investors should independently verify the material contained in this Information Memorandum/Presentation. No person has been authorised to give any information or

to make any representations other than as contained in this Information Memorandum/Presentation and any representation or information not contained herein must not be relied upon as having been

authorised by archTIS or its Directors.

This Information Memorandum/Presentation is issued by the Company and it has not been issued by any other person or their agents, officers, employees or affiliates.

Neither archTIS , nor its Directors, their agents, officers, employees or affiliates may make any express or implied representation, warranty or undertaking with respect to this Information

Memorandum/Presentation, and none of them accepts any responsibility or liability as to its accuracy or completeness or as to the suitability of the proposed investment for any particular investor. This

Information Memorandum/Presentation should not be considered as a recommendation by archTIS or its Directors or any of their agents, officers, employees or affiliates in relation to any proposed investment.

Confidentiality

This Memorandum is strictly confidential. By receiving this Memorandum, the recipient agrees:

• to keep confidential the information contained in it or made available in connection with any further review or investigation of the information in this Memorandum, or the archTIS Business

• to use this information for the sole purpose of deciding whether to invest in archTIS

• to return all information to archTIS immediately upon request by archTIS

• to not photocopy, reproduce, scan, email or distribute this Memorandum to any person by any means whatsoever at any time, without the prior written consent of archTIS

• that this confidentiality obligation of the recipient does not amend or limit any other confidentiality or non-compete undertaking that the recipient may have already given to archTIS

• applies to the recipient regardless of whether not they invest in archTIS or not; and

• continues for a period of three (3) years from the date of this Memorandum.


T I M I N G

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SIGNIFICANT DATES

LODGMENT OF PROSPECTUS 19 JULY 2018

EXPOSURE PERIOD BEGINS 19 JULY 2018

OPENING DATE OF THE OFFER 26 JULY 2018

CLOSING DATE OF THE OFFER 16 AUGUST 2018

ISSUE OF SHARES UNDER THE OFFER 19 AUGUST 2018

DESPATCH OF HOLDING STATEMENTS 19 AUGUST 2018

EXPECTED DATE FOR QUOTATION OF SHARES 23 AUGUST 2018

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* Indicative dates only


I N V E S T M E N T O P P O R T U N I T Y

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CYBER SECURITY COMPANYAward winning Australian based company, established in 2006.

PROVEN TECHNOLOGYAlready developed technology platform that provides security, collaboration and content management.

”TOP SECRET” ACCREDITEDUnique document sharing platform (“Kojensi”) currently in use by the Department of Defence. First secure content and collaboration software accredited to “TOP SECRET” by the US and Australian Departments of Defence to use attribute based access control (ABAC).

INTELECTUAL PROPERTYCore patents pending.

UNLOCKING NEW POTENTIAL

Further development of the platform into a government cloud and commercial cloud-based offering.

SIGNIFICANT MARKET OPPORTUNITY

Health, legal, accounting, investment banking and critical infrastructure.

IPO to raise $8M at $0.20 per share with listing expected mid

August 2018

IPO FOR A UNIQUE CYBER SECURE INFORMATION SHARING AND COLLABORATION PLATFORM


O U R J O U R N E Y

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CAPITALIS ING ON NEW MARKETS


B O A R D

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EXTENSIVE EXPERIENCE AND PROVEN TRACK RECORD

Stephen Smith, Independent ChairmanStephen Smith was Federal Member for Perth for the Australian LaborParty from March 1993 until September 2013. In a career spanning 20years in the Australian Federal Parliament, he served as the Minister forDefence, and as Minister for Foreign Affairs. Stephen completed hisBachelor of Arts and Bachelor of Laws at the University of WesternAustralia and a Master of Laws in Public International Law at LondonUniversity.

Daniel Lai, Managing DirectorDaniel is a Founder and Managing Director of archTIS. He has extensiveindustry experience in successfully delivering outcomes as part of asenior executive team to both government and commercialorganisations. Daniel has led large complex deliverables for majororganisations such as the Department of Defence and AustralianCustoms Service. Daniel is a regular speaker at industry events and hasbeen featured in the Australian Financial Review and CIO magazine.

Bruce Talbot, Executive Director & ChiefTechnology OfficerBruce is a Principal Consultant, Directorand Founder of archTIS. He holds a MasterDegree in Business Technology (MBT),Advanced Diplomas in Computing andRadar Engineering and a Diploma ofAdvanced Electronics. He also has over 20years in the Australian Defence Force anda further 20 years in the commercialsector working for Computer Associates,Hitachi Data Systems, Airservices Australiaand the Australian Federal Police.

Leanne Graham, Independent Non-Executive DirectorLeanne Graham brings over 30 years ofexecutive sales and technologyexperience, having founded a number ofsuccessful software businesses. Leannewas the highly successful former NewZealand General Manager and global headof sales for Xero. Leanne holds a numberof board positions which includes Non-Executive Chair of Velpic, Non-ExecutiveDirector of Bid Energy both ASX listed fastgrowth companies as well as Non-Executive Chair of APE Mobile.

Wayne Zekulich, Independent Non-Executive DirectorWayne has a broad range of experiencecovering advice on mergers andacquisitions, arranging and underwritingproject financings, privatisations, and debtand equity capital markets. Wayne hasheld the role of Chief Financial Officer ofGindalbie Metals Ltd, Chief DevelopmentOfficer of Oakajee Port and Rail, ExecutiveVice President Commonwealth Bank (WA,SA, NT) and Head of the Perth office ofNM Rothschild & Sons. He is currentlyHead of Perth for Deutsche Bank.

archTIS INVESTOR PRESENTATION – JULY 20180.50% CuEq cut-off

C Y B E R S E C U R I T Y M A R K E T

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THE OPPORTUNITY

CONTENT SECURITY

www.prnewswire.com, 2018

S IGNIF ICANT GROWTH IN GLOBAL CYBER MARKET

▪ The global cloud contentdelivery network market wasvalued at US$5 billion in2017. Expected to reachUS$20 billion by 2025.

▪ Critical need particularlyfrom governments tosecurely collaborate andshare information.

H A L F O F A L L C L O U D S E C U R I T Y S E R V I C E R E V E N U E W I L L C O M E F R O M C O N T E N T S E C U R I T Y B Y 2 0 1 9

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A R C H T I S H I G H L I G H T S

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• archTIS received the Defence Excellence in Security Award (2014)

• Employs 35 staff worldwide

• Government security clearances in place from “’TOP SECURITY” to “BASELIINE”

• Certified Defence Industry Service Partner

• Developed first “TOP SECRET” content security and collaboration software for US and Australian Departments of Defence

• Approximately $13 million revenue over the last six years

• Currently providing services to a number of government agencies including Department of Defence, Department of Finance and Department of Foreign Affairs and Trade

12 YEAR PROVEN TRACK RECORD WITH US AND AUSTRALIAN GOVERNMENT AG ENCIES

• Wealth of experience and strong client relationships in place in government and private enterprises

KEY PARTNERS


T H E a r c h T I S T E C H N O L O G Y

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CYBERSECURITY AND SECURE INFORMATION SHARING A SUITE OF PRODUCTS

Kojensi

• On premises secure content and collaboration

• Used in Department of Defence

• Secure content and collaboration services

for the commercial sector

• Portable secure content and collaboration

services for remote and isolated areas.

• Centralised security management system

that underpins Kojensi

• Secure content and collaboration cloud

service for government agencies

Kojensi-Gov Kojensi-Cloud Kojensi-Field DataKloak


• Kojensi is the current product sold toDefence

• Kojensi is built from a number ofcommercial off the shelf productsaugmented with proprietary archTISintellectual property

• Kojensi can be sold directly toEnterprises as a System Integrationsale and is the core underlyingtechnology in other archTIS productlines

K O J E N S I

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KOJENSI IS AN ENTERPRISE PRODUCT FOR THOSE ORGANISATIONS THAT WI SH TO HAVE AN ON -PREMISES SOLUTION FOR SECURE CONTENT COLLABORATION AND MANAGEMEN T


K O J E N S I G O V

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• Kojensi Gov will be hosted in a governmentcertified secure cloud service

• Trials with the Commonwealth Departmentof Finance have been successfully completed

• SaaS-based pricing model

• Product Development is underway with aBeta launch expected during 4Q18

KOJENSI GOV CAN BE CONFIGURED AS A PUBLIC , PRIVATE OR HYBRID OFFERING. IT I S DES IGNED TO BE COMPLIANT WITH AUSTRALIA, NEW ZEALAND, CANADA, UK & USA GOVERNMENT

REQUIREMENTS (“F IVE EYES”)


K O J E N S I F I E L D P R E - C O N F I G U R E D S Y S T E M

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KOJENSI F IELD WILL BE AN APPLIANCE THAT HAS BEEN DESIGNED FOR MOBIL ITY AND RAPID DEPLOYMENT FOR SMALL USER COMMUNITIES UP TO 250 USERS

• Kojensi Field will be a Secure Content andCollaboration appliance (pre-configured turnkeysolution)

• Kojensi Field will be sold as a rapidly deployedproduct that can service up to 250 users

• Uses include military deployments and humandisaster relief efforts


1. The UI/UX has been designed after extensive marketresearch and consultation with our clients. It hasbeen developed as a REST Graphic User Interface so isindependent of the underlying technology.

2. DataKloak is the command centre for Attribute BasedAccess Control. From here you publish and populatepolicies and attributes for information, devices,identities and systems for access control.

3. DataKloak is designed to be vendor agnostic so it canwork with different ABAC products. At present,interfaces have been developed for Oracle ContentManager and Microsoft Active Directory.

D A T A K L O A K

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DataKloak

UI / U

X

(User

Ce

ntr

ic I

nte

rfa

ce)

Enterprise

Content Management

System

AB

AC

en

gin

e

(Attrib

ute

Ba

se

d A

cce

ss Co

ntro

l)

Core Capability

1. Single interface to multiple products

2. Simplifies configuration3. Reduces administrative

overheads4. Decreases security risk

• Unique IP developed by archTIS, patent pending

• Utilised in all archTIS products and can be licensed independently for any third party content and/or collaboration products

CENTRAL USER INTERFACE TO MULTIPLE UNDERLYING SYSTEMS


W E L L P O S I T I O N E D S T R A T E G I C A L L Y

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• “Top Secret” accreditation by US and Australian Governments

• Other accreditations: ISO 27001, AGRKMS, SGLS, DDMS 5.0, NIST SP 800-5, WCAG 2.0

EXCLUSIVE ACCREDITATION COMPLETE SOLUTION PROVIDER

• Limited competition in the Australian Secure Content market, with other providers determined unsuitable or not authorised to provide for government agencies

• Employees cleared to work within defence/government/intelligence

• US National Institute of Standards and Technology

• Proven capabilities in restricted areas of government

TRUSTED RELATIONSHIPS

• Recent high level cyber security breaches gaining significant media attention and causing increased concerns from community and organisations

• Critical demand from government and national security agencies

STRONG DEMAND

UNIQUELY POSIT IONED TO EXPLOIT RAPIDLY GROWING MARKET


• Completed extensive competitor analysis includingactive use of competitor products

• Direct engagement and feedback from our targetclients who are assisting in product design

• Most importantly we have a niche market ofclassified information and a competitive advantagein accessing this market. We are the only companythat offers a solution with the benefits of ABACsecurity to a content and collaboration product

• Current competitors in the Australian GovernmentSecure Content market include SIgBox andObjective - both were evaluated by the Departmentof Finance as unsuitable for a trial

• Overseas competitors include Box and Huddlehowever neither are certified to handle highlyclassified material

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A R C H T I S H A S T H E T O T A L P A C K A G E

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A COMPLETE SECURE CONTENT, COLLABORATION & INFORMATION SHARING P LATFORM


C O M P A R A T I V E A N A L Y S I S

Company Name TickerShare Price Market Cap

DescriptionA$/share A$m

Senetas Corporation SEN.AX 0.12 124.4Develops fingerprint technologies used in security for license identification, Internet use and smart cards.

Covata CVT.AX 0.02 15.5Protects data over untrusted networks and insecure devices in the cloud and mobile devices. Covata provides access controls and security solutions.

Department 13 D13.AX 0.08 41.4Department 13’s expertise in wireless and cellular technologies, cyber security, drone threat modeling and forensics forms the cornerstone of their counter UAS solutions.

Firstwave FCT.AX 0.26 57.3Offers services in the areas of cloud content security, content analytics, and data loss prevention. Firstwave Cloud Technology serves customers in Australia.

Flamingo AI FGO.AX 0.04 43.8Provides a software platform with assets which offers financial services and products online.

IXUP IXU.AX 0.27 42.8Encryption software that allows a data matching process to expose insights and commonalities in the encrypted data sets without exposing the actual data.

Whitehawk WHK.AX 0.07 5.0 Operates an Internet based cybersecurity marketplace.

archTIS AR9.AX 0.20 24.6archTIS developed attributed based access control products and services to solve content and collaboration sharing challenges for classified information.

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I N T E L L E C T U A L P R O P E R T Y

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• Patent application for DataKloak in place

• Three critical aspects of the platform (Kojensi & DataKloak):

1. Security

➢ABAC: attribute-based access control (ABAC) enables the Kojensi security model.

2. Management

➢DataKloak: DataKloak is Kojensi’s security management command centre and will also be sold as an

independent product.

3. Usability

➢UI/UX: archTIS has developed a powerful user interface / user experience that allows seamless simultaneous

usability of Kojensi for multiple users from multiple organisations.


R E V E N U E M O D E L

12 YEARS ESTABLISHED CONSULTING & SYSTEMS INTEGRATION CL IENT BAS E

CONSULTING SYSTEMINTEGRATION

CLOUD BASERECURRINGREVENUES

TECHNOLOGYPRODUCT

SALES

ENTERPRISE CUSTOMERS

PAYING PER USER

CYBER SECURITY THREAT PROVIDES GROWTH DRIVERS

HIGHLY VALUED BY STRATEGIC

INDUSTRY PLAYERS

GLOBALLYSCALABLE

RECURRINGREVENUE

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ACTIVITY P IPEL INE NEXT S IX MONTHS

P I P E L I N E O F V A L U E A D D M I L E S T O N E

19archTIS INVESTOR PRESENTATION – JULY 2018


T W O Y E A R U S E O F F U N D S

Min Subscription

($8m raise)% of Funds

Existing cash reserves $1,100,000 12%

Funds raised from the Offer $8,000,000 88%

TOTAL $9,100,000 100%

Ongoing Product development $2,200,000 24%

Sales and marketing $1,500,000 17%

Repayment of existing banking facility $300,000 3.30%

Expand customer support capability $1,000,000 11%

Working capital and other expenses $3,300,000 36%

Costs of the Offer $790,000 9%

TOTAL $9,100,000 100%

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C A P I T A L S T R U C T U R E

I P O & C A P I T A L R A I S I N G

P O S T I P O C A P I T A L S T R U C T U R E

S H A R E H O L D I N G S

P R E I P O C A P I T A L S T R U C T U R E

Existing shareholders: 60,702,042 (50.68%)

IPO Investors: 40,000,000 (32.5%)

Directors & Management: 22, 394, 940 (16.82%)


IPO Investors: 40,000,000 (32.5%)



IPO Investors: 40,000,000 (32.5%)


Shares Currently on Issue: 83,096,982 shares

Options Currently on Issue (1): 14,589,880

Partly Paid Shares on Issue: 720,000

Minimum Raise: A$8,000,000

Share Price: A$0.20

No of Shares Issued Under the IPO: 40,000,000

Options Issued to Advisors (2): 5,000,000

Issued Capital: 123,096,982 shares

Market Cap (@ A$0.20): $24.6m

Cash at Bank ex fees: ~$9.0m

Enterprise Value: ~$15.5m

Existing Shareholders: 60,702,042 (50.68%)

IPO Investors: 40,000,000 (32.5%)

Directors & Management: 22,394,940 (16.82%)

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1 4,289, 880 Options @ $0.10 on or before 10 October 20221 7,500,000 Options @ $0.12 on or before 1 February 20211 1,200,000 Options @ $0.20 on or before 1 July 20231 1,600,000 Options @ $0.20 three years from date of issue2 5,000,000 Options @ $0.24 four years from date of issue


I N V E S T M E N T S U M M A R Y

PROVEN TECHNOLOGYKojensi secure content and collaboration platform in use by Department of Defence

CRITICAL DEMAND Governments and organisations need to secure and share sensitive information

MARKET OPPORTUNITY Developing Kojensi into a cloud based service for government and commercial sectors

TRENDING ISSUE Cyber security and the global movement towards cloud based computer services are key market drivers

INTELLECTUAL PROPERTY Patent application submitted for DataKloak

STRONG TEAM Security clearances in place to work within the highest levels in government. Significant IT and government experience

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C O N T A C T U S

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@ A R C H T I S

Daniel Lai, Managing Director

[email protected]

Tel: 1300 ARCHTIS - +61 2 6162 2792

www.archtis.com

Level 3, 10 National Circuit

Barton ACT 2600

Australia

Lead Manager Contact

Jason Peterson, Director/Head of Corporate/CEO

Tel: +61 413 261 972

[email protected]

Level 45, 108 St Georges Terrace

Perth WA 6000

Australia

Harry Karelis, Director

[email protected]

Tel: +61 413 056 328

[email protected]

Level 5

235 St Georges Terrace

Perth WA 6000

- c y b e r s e c u r i t y - i n f o r m a t i o n s h a ...€¦ · archtis investor presentation...

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