archTIS Ltd (ASX:AR9, OTCQB:ARHLF) is set to raise A$7.5 million through a strongly supported share placement, aimed at accelerating its strategic growth initiatives.
The funds will be used across three priority areas: expansion of US operations, deepening of strategic partnerships and advancement of product development. These initiatives are central to the company’s goal of strengthening its position in regulated and high-security sectors such as defence and government.
The capital raise attracted new and existing institutional and sophisticated investors, as well as key company executives, reflecting solid confidence in ArchTIS’ global direction.
“This capital raise marks a pivotal step forward in executing our strategic international expansion and revenue growth plans. The funds raised will enable us to scale our US operations, strengthen our existing strategic partnerships, and accelerate product development and innovation to meet the evolving, stringent security needs of enterprise and government clients – especially in highly-sensitive and regulated markets such as defence,” archTIS managing director and CEO Daniel Lai said.
ArchTIS will issue approximately 50 million new shares at A$0.15 per share, representing a 17.4% discount to the 7-day volume-weighted average price (VWAP) and a 15.5% discount to the 14-day VWAP. The placement is expected to close on or around July 7, 2025.
US expansion and support – $3 million
A major portion of the funds will be directed toward scaling ArchTIS’ United States operations.
The investment will expand internal delivery and client success teams, enhance implementation and technical support functions, and improve post-sales infrastructure. This includes automating onboarding processes and developing customer health metrics to deepen client engagement and satisfaction.
“Importantly, this capital raise is aimed at driving sustained revenue growth by strengthening our go-to-market capabilities,” Lai said. “It will allow us to expand our delivery capacity, enhance our onboarding and support infrastructure, and provide new distribution opportunities in international markets. By implementing scalable models with next-gen technology, we are positioning archTIS to capitalise on the growing demand for secure data-centric sharing platforms.
“We are deeply grateful to our investors for their continued support and confidence in archTIS as we pursue our vision to be a global leader in data-centric security.”
Strategic partnerships – A$1.5 million
The company will allocate A$1.5 million to expand strategic partnerships and alliances. Initiatives include hiring personnel to manage partnerships, building systems to support technology alliances, and funding joint marketing campaigns to strengthen engagement within its partner ecosystem. These partnerships are expected to play a vital role in driving scalable growth.
Product development – A$3 million
The remaining A$3 million will fund product development activities, focusing on enterprise-specific usability enhancements and advancing research and development in artificial intelligence, analytics, and automation. Funds will also support regulatory certifications and security improvements to maintain compliance with defence and other regulated sectors’ requirements.
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