Defenx Plc (AIM:DFX) sought funding from UK Bond Network to continue the development of their product portfolio, catering for the burgeoning corporate cybersecurity market.
Defenx primarily produces anti-malware products for consumers. It is focused on growing its network of channel partners and broadening its international reach as well as providing solutions for businesses.
UK Bond Network investors invested £1.25m in the convertible bond offer, earning 10% gross per annum over a 36-month term.
We met UK Bond Network last year, we got to know them and as far as we could see their structure is properly implemented; it is built on much bigger corporate bond structuring.PHILIPP PRINCE, CFO, DEFENX
It is industry-standard recognisable, while the conversion is at a premium, so it worked for us.
Key auction statistics & Headline terms
Number of investors
Final interest rate (gross per annum)
|Repayment||Interest-only payable quarterly, bullet repayment upon maturity|
|Conversion price||200 pence per Ordinary Share, being a 7.8% premium to the closing price of 185.5 pence on 3 August 2017, the day prior to announcement|
|Security||An all assets debenture from the Issuer and its subsidiaries Defenx SA and Memopal SRL. A guarantee from Defenx SA and Memopal SRL|
|Use of proceeds||To invest in its product portfolio, delivery and sales capability and to accelerate growth in existing and corporate markets|
Broadening Defenx's international reach
Last year, Defenx acquired Memopal, a provider of cloud-based solutions for information storage (and previously a channel partner). This acquisition offered cross-selling opportunities and synergies as well as bringing new IP, customers and customer support capacity. Before the year-end, Defenx also announced a long-term strategic partnership with BV-Tech, a leading Italian corporate IT and cyber security solutions provider.
With the support of BV-Tech as a significant shareholder, Defenx believes that it will be able to target larger corporate customers more rapidly and cost-effectively, with a view to adding high quality recurring revenues in the medium term.
Firstly, Defenx is operating in a sector that is particularly popular at the moment and one that we find very interesting, where we believe there is currently a good, strong growth opportunity. Importantly we believe in the capability of the management team to take advantage of this.CHRIS MAULE, CEO & FOUNDER, UK BOND NETWORK
Since we initially opened a dialogue with them about a year ago, it's been very encouraging to see them continue to deliver over that period, from adding further channel partners to the successful integration of Memopal to then also moving into their fifth year of profitable growth.
Personally, I like the fact that the Company has both a strong and diverse shareholder base and I think that's been reflected in the ongoing support they've received from them.