archTIS Ltd (ASX:AR9, OTCQB:ARHLF) has moved to settle its remaining obligations under a previously proposed debt facility with Regal Partners Holdings Pty Ltd, issuing warrants instead of paying cash fees after mutually terminating the arrangement.
The data-centric security company said it had entered into a Warrant Deed with Regal, as trustee for the Regal Tactical Credit Fund, following the termination of the senior secured delayed draw debt facility term sheet announced on December 22, 2025.
Under the deed, archTIS will issue 5,508,014 warrants to Regal with an exercise price of A$0.091 and a five-year term. The warrants will be issued under the company’s available placement capacity under ASX Listing Rule 7.1.
The company said the warrant issue would satisfy in full and final settlement its obligations under the Regal Term Sheet, excluding certain legal fees and costs.
The move allowed AR9 to preserve cash while linking the termination consideration to future share price performance rather than making an immediate cash payment tied to the previously contemplated line of credit.
The company no longer expects to draw on the Regal debt facility after recently securing increased and extended banking facilities with Commonwealth Bank of Australia, as outlined in its February 26, 2026, ASX announcement.
Management said the warrant-based settlement reflected greater financing flexibility and a disciplined capital management approach, enabling the company to avoid taking on additional debt, interest costs and restrictive covenants.
By stepping away from the Regal facility, archTIS said it would retain operational and strategic flexibility while relying on its strengthened banking arrangements to support the business.
archTIS recently secured a contract with a US and European military alliance to provide data security technology supporting secure collaboration across allied transatlantic defence operations.
The contract will see the company’s NC Protect platform deployed to protect member nation data across multiple civil-military security domains spanning dozens of allied countries.
For the balance of calendar year 2026, the initial contract covers more than 2,500 users and is valued at about A$416,000, including around A$244,000 in licensing revenue and A$170,000 in configuration and support services.
Two 12-month option periods, exercisable at the purchaser’s discretion, could add a further A$805,000, taking total potential contract value to about A$1.22 million based on an EUR/AUD exchange rate of 1.66.
