Veriluma wins $2M Defence contract after end of administration

Veriluma wins $2M Defence contract after end of administration

The contract could run until 2024

Credit: Dreamstime

Australian security software vendor Veriluma has signed a $1.9 million contract with the Department of Defence.

Listed on the Australian Securities Exchange, Veriluma announced the three-year contract with Defence on 22 February, with a possibility for a two-year extension.

Veriluma did not specify details of the contract only stating it will play a role in the transformation of data into value-added intelligence.

"We are delighted our proposal has been accepted by the Commonwealth," Veriluma CEO Elizabeth Whitelock said. "Veriluma’s software and personnel will support the essential work carried out by the department in the protection of Australia’s national interests in an ever-complex environment.

"We look forward to strengthening our relationship with Defence over the next three years and into the future.”

Veriluma was placed into administration in November 2017, stating at the time the voluntary administration was a decision that the board believed the best route to preserve shareholder value.

In December 2017, Whitelock told ARN that shareholders were upset by the fact that the resolutions that were proposed didn’t get considered or allowed to be voted on.

In March 2018 a deed of company arrangement (DOCA) was proposed, which had been executed by June 2018.

The company entered discussions with various parties to trial its software and with partner organisations to include Veriluma's software in their solutions to market during the third quarter of calendar 2018.

It was then that Veriluma submitted a response to a Commonwealth Government tender and consulted to a Defence contractor.

In January, Veriluma revealed entered negotiations with the Commonwealth following the tender submission.

The vendor has also performed proof of concept trial with a "leading international electronics and systems group" and discussions around their expansion and rollout had begun. Another win was the purchase of Veriluma's software by an Australian university to be used in a research project.

"The story is very encouraging for shareholders who backed Veriluma and who can now see some success for the company that will ultimately lead the stock back to being listed on ASX," Peter Taylor, an early stage investor told ARN.

"There currently is no schedule for that event but it is the plan. Canary Capital have shown a lot of faith and risked considerable funds to enable the company to get back to this stage after it was de-listed and put into administration.

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