Research Report: Defenx

Defenx

Defenx

Defenx is an AIM quoted cyber-security software company which offers a range of security, back-up and protection solutions for smartphones, PCs and networks with encryption now added to its product suite. In August 2016, it acquired Memopal Srl and in April 2017 announced a strategic partnership with BV-Tech who has become the company's largest shareholder with Board representation. A June 2017 Trading Update confirmed trading was in line but the core business is seasonal and remains H2 weighted. Defenx thus represents a speculative investment opportunity and hence is not without risk. On 7 August 2017, the company announced it had raised over £1.74m (gross) in a placing, broker option and subscription at 160p with BV-Tech subscribing for £250,000. The proceeds from the fundraise will be used to accelerate growth with it and BV-Tech in the advanced stages of a master services agreement. Dealings in the placing and broker option shares are expected to commence on 11 August 2017 with dealings in the subscription shares expected to start on 1 September 2017. Defenx is also proposing to raise up to £2m by way of a convertible bond issue which is subject to shareholder approval in a General Meeting on 23 August 2017.