Falanx Group Limited Acquisition and Appointment of CTO (3009Q)
September 11 2017 - 2:00AM
UK Regulatory
TIDMFLX
RNS Number : 3009Q
Falanx Group Limited
11 September 2017
Falanx Group Limited
("Falanx" or "the Company")
Acquisition and Appointment of Chief Technology Officer
Falanx Group (AIM:FLX), the global intelligence, security and
cyber defence provider, is pleased to announce the acquisition of
AuditSec Services Ltd ("AuditSec"), a cybersecurity company founded
by Richard Morrell, one of the UK's foremost cybersecurity
entrepreneurs.
AuditSec provides consultancy services and thought leadership to
brands across Europe, aligned with and contracting to The Cloud
Security Alliance. The company has provided security guidance to
some of the world's largest petrochemical, pharmaceutical and
industrial companies.
As part of the transaction Mr Morrell joins Falanx Group from
Gartner, the global information technology research and advisory
firm, where he served as their Chief Technology Officer and
Technical Director for the Security and Risk Practice to world
leading brands. Richard will act as Group Chief Technology Officer
(CTO) and Managing Director of Falanx Cyber Technologies, teaming
up with Jay Abbott, Exec-Director Cyber Defence, to drive further
innovation and market penetration of MidGARD.
Richard co-founded SmoothWall in August 2000 and co-developed
the firewall technology of the same name, which fast became a
global standard. SmoothWall continues to trade successfully and
profitably, protecting millions of networks worldwide. After
successfully exiting SmoothWall, Richard headed up Internet
Security for VirginMedia, who he still works with after fifteen
years, having recently protected them against a major vulnerability
affecting their European platform as recently as July 2017.
Richard is an in-demand public speaker, appearing on stage
throughout 2017 as a Cyber expert, at the invitation of the US
Department of Homeland Security, Foreign and Commonwealth Office,
American Petrochemical Institute, Trend Micro and governments
across Central and Southern Europe. Most recently AuditSec provided
guidance and input to a major cyber breach affecting one of the UKs
foremost telcos. AuditSec has also recorded and produced a series
of radio shows, with Richard talking to thought leaders in
cybersecurity across the world and a listening audience of over
80,000 downloaders.
Richard is a UK CLAS GCHQ accredited consultant and has worked
with UK and US Government agencies at the highest levels including
the US Inland Revenue Service and the US Department of Defense on
Five Eyes and Four Eyes projects at battlespace and deployed
level.
AuditSec made a GBP8,641.68 profit in the 7 month period 23
January to 29 August 2017 and is forecast to generate GBP250,000 of
revenue over the full reporting year. Reported net assets of
GBP8,431.33 as at 29 August 2017.
The acquisition will be financed by issue of 750,000 Falanx
shares. Application will be made for the admission of 750,000 new
Ordinary Shares to be issued pursuant to the Acquisition to trading
on the AIM Market of the London Stock Exchange, which is expected
to take place on or around 8.00 a.m. on 18 September 2017
("Admission"). Completion of the Acquisition and is conditional on
Admission becoming effective. The new Ordinary Shares will, when
issued, be credited as fully paid and will rank equally in all
respects with the existing Ordinary Shares, including the right to
receive any dividend or other distribution declared, made or paid
after Admission.
Following Admission, the Company's enlarged issued share capital
will comprise 157,290,075 Ordinary Shares carrying one vote per
share. The Company does not hold any Ordinary Shares in
treasury.
Stuart Bladen, CEO of Falanx Group, commented:
"We are delighted to welcome Richard Morrell and AuditSec to
Falanx Group. Richard is a very highly regarded specialist in the
Cyber Security industry, so will prove a highly complementary
individual to our team in his role of Chief Technology Officer. The
acquisition of AuditSec is a very good strategic fit for our
company, especially due to the nature of its business, leading on
Cyber Strategy projects with some of the world's largest
companies"
Jay Abbott, Executive Director of Falanx Cyber Defence,
commented:
"I have known Richard for some time and I am very aware of his
outstanding capabilities. He brings a hugely beneficial knowledge
of the sector, network and skill set to Falanx and will help the
business to continue to grow rapidly. Moreover, the addition of
AuditSec will help bring a new range of customers to the Group
which will provide further opportunities."
Enquiries:
Falanx Group Limited www.falanx.com
Stuart Bladen, Chief Executive
Officer
--------------------------------- ----------------------
SPARK Advisory Partners
Limited
Nominated Adviser
Matt Davis / James Keeshan +44 (0) 203 368 3551
--------------------------------- ----------------------
Turner Pope Investments
Broker
Ben Turner / James Pope
+44 (0) 203 621 4120
IFC Advisory Ltd
Graham Herring
Tim Metcalfe
Miles Nolan +44 (0) 203 053 8671
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Notes to Editors
Falanx Group Limited, is a global intelligence
and cyber defence provider working with blue
chip and government clients. The Group listed
on AIM in June 2013 under ticker FLX. For more
information: http://www.falanxgroup.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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