LONDON, UK: BrandShield Systems plc (AIM: BRSD), a provider of cybersecurity solutions for brand oriented digital risk protection, will sell new ordinary shares worth £1.75 million at the rate of 6 pence/share in order to maintain growth in ARR and to further capitalise on a significant market opportunity taking the company through to profitability on current projections.

The company announced on Monday its intention to undertake an equity fundraise consisting of a conditional placing and subscription of new ordinary shares of £0.01 each at a price of 6 pence per New Ordinary Share to raise gross proceeds of £1.75 million (approximately $2 million).

Brandshield Systems has built a best-in-class, highly scalable platform offering a comprehensive solution that detects a myriad online threat. The business has seen strong cross sector demand including financial, Pharma & healthcare, Consumer products and Media & entertainment

The Company has achieved significant operational and financial progress this year:

• Strong financial momentum, ARR reached $7.6m in Q3 2022 (up c. 250% since the listing in December 2020, and up 46.5% in 2022 YTD)
• Deployments with 172 customers, up from 129 in 2021 & 75 in 2020

Net proceeds from the Fundraise taken together with the Company’s current cash balances (which amount to c$1.16 million at 31 October 2022) will be used to for working capital to support the Company’s planned continued growth in ARR.

With an enlarged sales team now in place, based on company projections, continuation of growth in ARR at a similar rate to 2022 YTD should result in positive cash flow in Q1 2024.

The Placing will be conducted by way of an accelerated bookbuild which will be launched immediately following the release of this announcement.

 Yoav Keren, Chief Executive Officer of BrandShield Systems, said this additional round of investment will enable the company to maintain growth to further increase the market share. “Our products are now deployed across multiple sectors globally, protecting a diverse customer base from multinational household names to small, high growth companies.”

“The market for our services continues to be incredibly buoyant, and I firmly believe that BrandShield is ideally placed to further capitalise on this demand.”

Details of the Placing

The Placing will be conducted by way of an accelerated book building process (the “Bookbuild”) which will be launched with immediate effect following this Announcement in accordance with the terms and conditions set out in Appendix I. The Placing Shares are not being made available to the public. It is envisaged that the Bookbuild will close no later than 6.00 p.m. GMT today, Monday 14 November 2022. Details of the number of Placing Shares, the Placing Price and the approximate gross proceeds of the Placing will be announced as soon as practicable after the closing of the Bookbuild. The Placing is not underwritten.

Shore Capital Stockbrokers Limited is acting as sole bookrunner in respect of the Placing. ‎

Details of the Subscription

The Company expect that certain investors may subscribe in the Fundraising direct with the Company. The principal terms of the Subscription will be similar to those in the Placing.

Admission of New Ordinary Shares

Application will be made for the New Ordinary Shares to be admitted to trading on the AIM market of the London Stock Exchange plc.

Brandshield is a provider of cybersecurity solutions from brand protection to online threat hunting. Company’s client base is a growing list of organisations including Fortune 500 and FTSE100 companies. By utilising AI and big-data analysis, BrandShield monitors, detects, and removes online threats facing companies. These threats include social phishing, executive impersonation, fraud, brand abuse, and counterfeits.