placement at .55 for 40mil dollars

5 December 2006
Company Announcements Office
ASX
Level 6
20 Bridge Street
SYDNEY NSW 2000
Dear Sirs,
CAPITAL RAISING OF $40 MILLION
Please find attached statement by Directors.
Yours faithfully
Andrew R Wilson
Company Secretary
Senetas Announces Capital Raising of $40 million for Strategic Investment.
Senetas Corporation Limited (ASX: SEN), a leading IT security hardware and solutions company announced today that it had raised $40 million for the purposes of a future strategic investment through a combination of a private placement of 46.02 million shares at 55 cents a share and a convertible note for $14.72 million in a transaction managed through Shaw Corporate Finance.
The nature of the future investment will be commercially confidential for some time.
In preparation for the investment, Senetas has entered into a strategic alliance with IKL Management Group (”IKL”).
IKL is a special purpose investment company representing significant investors based in the US and several other countries.
IKL took up the share placement and holds the convertible note. IKL will also acquire 21 million shares from Senetas Chairman, Francis Galbally, Director Ron Lunt and another associated Senetas shareholder.
After the placement of 46.02 million shares and the acquisition of the further shares, IKL will hold approximately 13.2% of the ordinary share capital of Senetas.
The convertible note expires on the 30th June 2010 and may be converted by IKL at any time and Senetas at any time after the first 12 months. Interest accrues annually in arrears and may be capitalized at the time of conversion.
About Senetas:
Senetas Corporation Limited (ASX Code: SEN) is an Australian ASX S&P 300 company and is the world’s leading developer and supplier of high speed network encryption hardware products. Its products are accredited to the highest international government security standards. Customers include Government departments in the USA, Australia, the Middle East, Asia, and European Countries as well as some of the world’s leading financial institutions. Visit Senetas on www.senetas.com
For further information contact:
Investor Relations
Senetas Corporation Limited
Phone: 1300 787 795
Email: [email protected]