4 February 2000
Union Capital Limited announces that it has signed a Heads of Agreement with Identikey to take the Identikey Internet security product to a public offering on the
Australian Stock Exchange, with possible quotation at a later date in Europe and/or Nasdaq.
The Heads of Agreement provides, subject to due diligence, for Union Capital Limited to act as underwriter for a proposed AUD 20 million issue of new shares in
Identikey for a 25% equity stake. Each new share issued in the public offering will also receive an option to subscribe for a further share.
The purpose for the fund raising is to provide working capital for Identikey to aggressively move into the North American market and for ongoing research and
development to ensure the Identikey product stays ahead of its competitors.
As announced recently, the Identikey security product has been chosen by Computer Associates EMEA as the security platform for their e-business initiatives. In
addition, the European presence has appointed Q&I (Netherlands) and DMST (UK) as two distributors and is finalising contracts with Telindus and Betech Data to
provide complete coverage of the European region.
Also recently announced, was a sale to the US based South Trust Bank in Alabama, which indicates that the North American market has a demand for this high level
Internet security product.
Union currently has an option to increase its equity in Identikey to 45%, which can be terminated by Identikey if the funds are not required. In recognition of this option,
Union and Identikey have agreed that shareholders of Union Capital Limited will be offered 45% of the new share and option issue in Identikey. Union Capital Limited
presently controls 30% of the equity of Identikey which would reduce to 22.5% upon completion of the public offering. Those who do not accept the offering will still
benefit from the 22.5% investment held by Union Capital Limited. Details of entitlements will be determined closer to finalisation of the Identikey Prospectus.
For past announcements, please refer to Union’s web site at www.unioncapital.com.au