LONDON (Alliance News) - Cyber defence and intelligence provider Falanx Group Ltd Wednesday said it has won a new contract with British charity The Health Foundation, and it is trading in line with expectations as it reduces its cash burn.
Under the contract, Falanx will provide managed cyber security services for the core networks of the Foundation. Financial details of the contract were not disclosed.
The company said that, as a result of recent UK government contract wins, its growing client base and recent fundraising, it now has net cash of GBP1.5 million. It has also been managing its costs downward, and has reduced its burn rate to around GBP100,000 a month.
"Falanx continues to build a growing pipeline and is in contract negotiations with a number of further prospects, though the lead time for securing large corporate and Government sales can be significant," said Chief Executive Officer John Blamire in a statement.
"The key is to have in place the correct infrastructure, a skilled team, accreditations and an established reputation of working successfully with major government bodies. Having these building blocks in place will position Falanx as a provider of choice to organisations as they start to properly understand and define the cyber defence services that they require," Blamire added.
Separately, the company said it had issued 2.1 million shares to Non-Executive Chairman Mike Read and Non-Executive Director Desmond Carr at a price of 4.00 pence. Shares in Falanx were down 5.9% at 4.00 pence Wednesday morning.
Of that, 1.3 million shares were issued to Read, raising GBP50,000 for Falanx, as well as warrants over a further 2.1 million shares exercisable at 6p each through to May 2019. This is Read's only holding in the company, representing a 1.2% stake.
Carr was issued 875,000 shares in lieu of GBP35,000 of accrued directors fees owed to him, and subsequently has 1.1 million shares or a 1.1% stake.
Falanx will report its results for the year to end-March July 18.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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