Private placement for shares of Safetech Innovations gets oversubscribed 8.6 times

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Safetech Innovations SA, a Romanian cybersecurity company, announces the successful closing of a private placement for its shares. On October 19th, 2020 the company started private placement with a goal to raise 2.5 million lei from Bucharest Stock Exchange investors.  The offer was oversubscribed within 37 seconds and by the end of the day, the placement managed to attract a record oversubscription of 8.57 times.

“We thank all the investors for their interest in SAFE shares and we are thrilled to welcome them as co-shareholders in Safetech Innovations. The interests from BVB investors has utterly exceeded our expectations and together with our team, we look forward to working together to delivering sound financial results to all our shareholders. The capital raised today will fuel investments in the development of Safetech Innovations which will help us grow the market share on the local market. We are looking forward to our future on the Bucharest Stock Exchange and we encourage all companies, especially those from the IT sector, to consider listing on the local stock market as a part of their development strategy,” said Victor Gansac, CEO and shareholder in Safetech Innovations.

625,000 shares, which represent 20% of the share capital of the company, with a nominal value of 0.2 lei per share. The offer attracted an unparalleled interest, reaching an oversubscription rate higher than any other offer from a private company that listed on the Bucharest Stock Exchange in the past 6 years.

In total, investors have subscribed SAFE shares in the total amount of 21.435 million lei. In line with the allocation policy specified in the offer document, the shares will be allocated to investors on the pro-rata basis. Following the private placement, the market capitalization of Safetech Innovations reached 12.5 million lei. Once its shares float on the AeRO market, Safetech Innovations’ free-float will amount to 20%, while the Victor Gansac, the CEO and Paul Rusu, the CFO will each hold a 40% stake in the company.

The 2.5 million lei raised in the private placement will be directed into investments. By listing on the stock exchange and having access to capital, the company identifies an opportunity in the development of innovative solutions and products in cybersecurity, but also in increasing the technical capacity by developing the security testing laboratory. Investments in these new projects will be able to generate significant revenues, being based on proprietary technology.

The private placement for Safetech Innovations shares was brokered by TradeVille. Cornerstone Communications has advised the company on the listing and will be Safetech’s Authorized Advisory once the company’s shares float on the AeRO market of the Bucharest Stock Exchange.

“We are pleased that, despite negative news from the public around the pandemic, we see strong interest in the outstanding companies that TradeVille proposes to investors. Apart from that, Safetech is not only a NATO authorized supplier, but will become one of less than 10 listed cybersecurity companies in Europe that closed 2019 profitable. The 37 seconds record until the oversubscription of the private placement makes me believe that a mix between a good business model and the online system provided by TradeVille that grants investors access to offers, ensures successful entrepreneurs the best chance to obtain medium to long term financing on the stock exchange”, said Ovidiu-George Dumitrescu, Deputy General Manager of TradeVille.

We are thrilled for Safetech Innovations and their today’s success with the Bucharest Stock Exchange investors. We are honored to have been a partner to Safetech Innovations for the past 2 years, witnessing firsthand their transformation from a limited liability company to what will soon be a publicly quoted enterprise. Today’s success of Safetech Innovations and the two ambitious shareholders behind this business is yet another proof the local community of investors is awaiting innovative companies. The market capitalization is secondary, what matters most is the vision, the integrity and the people behind the business. These are the three keywords that explain the success of today’s offer” said Zuzanna Kurek, Partner at Cornerstone Communications.

Safetech Innovations was founded in 2011. It is the only company dedicated exclusively to information security on the Romanian market, which offers services both in the field of security and the implementation of security solutions. The company provides 24/7 cybersecurity monitoring and response, security audits, penetration testing, security risk management and security governance services. The company owns and operates STI CERT – Safetech Computer Emergency Response Team, one of the first private CSIRT established in Romania, internationally accredited, which provides companies from private and public sectors continuous monitoring of cybersecurity threats and intervention in case of security incidents.

In 2019, Safetech Innovations recorded a turnover of RON 10.5 million, an increase of 56.4% compared to 2018 result and a net profit of RON 1.25 million, an increase of 26.3% compared to 2018. In 2019, the company had a net profit margin of 11.8%. In the first half of 2020, Safetech Innovations registered a turnover of RON 5.3 million (+60.7% compared to H1 2019), a net profit of RON 450,246 (+61.5% compared to H1 2019), obtaining a net profit margin of 8.5%. For the full year 2020, the management expects revenues of an estimated 15.6 million lei and a net profit of 2 million lei. The company currently has 43 employees.

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