WhiteHawk extends working capital loan facility
WhiteHawk Limited (ASX:WHK) — the first global online cyber security exchange enabling businesses of all sizes to take smart action against cybercrime — today provided an update to the Share Placement and Equity Swap Agreement with RiverFort Global Opportunities PPC Ltd for A$1.5 million, as announced 30 January 2020.
At the company’s request, the share placement date under the Working Capital Facility has been extended to 1 July 2020 (from 29 May 2020), effectively securing a higher VWAP for the placement given the current buoyant market, while providing flexibility and avoiding dilution.
WhiteHawk confirms that it is under no obligation to proceed with the share issue component of the Working Capital Facility and such share issue may not be made if growing revenues are considered sufficient for any additional working capital needs at that time.
The consideration for the extension is a fee of A$4,000 as it includes an extension to 30 June 2020 for the bridge loan repayment date. The fee will be deducted from the final cash instalment due to WhiteHawk under the current equity swap agreement entered into in January 2019 with the RiverFort Global Opportunities Fund.
The placement price under the Working Capital Facility will be calculated on the 5 day VWAP for the 5 trading days prior to 30 June 2020, provided that no more than 28,142,590 shares be issued and the issue price be no less than A$0.0533 per share, pursuant to the shareholder approval on 21 May 2020.
This shareholder approval further requires that shares under the Working Capital Facility can only be issued within 3 months from date of that shareholder approval.
The company maintains a strong cash position of US$1.471 million as at 31 March 2020 and has reported growing revenues post 31 March 2020 to include US$400,000 in initial sales from a new SaaS Product.
As reported on 15 April 2020, the new SaaS Product is the Cyber Risk Program that incorporates Whitehawk’s Cybersecurity Exchange online platform, automated Cyber Risk Scorecards; and virtual consultations. The product is scoped remotely and implemented virtually, to any company anywhere in the world.