Why the Tesserent (ASX:TNT) share price is frozen today

The cybersecurity and networking solutions provider is raising capital to fund new acquisitions.
The post Why the Tesserent (ASX:TNT) share price is frozen today appeared first on The Motley Fool Australia. –

The Tesserent Ltd (ASX: TNT) share price won’t be going anywhere on Friday after the company requested a trading halt.

What’s the trading halt for?

The cybersecurity and networking solutions provider requested a trading halt on the basis of a capital raising to support pending acquisitions.

Tesserent shares are expected to remain frozen until Tuesday, 28 September or when the announcement regarding the capital raising is lodged.

The company had $14.8 million in cash and cash equivalents for the year ended 30 June 2021.

The Tesserent share price last traded at 23.5 cents on Thursday.

That’s a lot of acquisitions

Tesserent is deploying an aggressive acquisition strategy to strengthen its cyber security capabilities in areas such as public and private sector consulting services and managed services.

Since the beginning of FY20, the company has acquired the following assets:

Seer Security on 31 July 2020
Airloom Holdings on 2 September 2020
Ludus Information Security on 11 September 2020
iQ3 on 11 November 2020
Lateral Security Services (New Zealand) on 12 February 2021
Secure Logic on 28 April 2021
Loop Secure on 18 August 2021.

Tesserent share price going nowhere in 2021

The Tesserent share price has struggled to make headway in 2021. It is down 32% year to date to 23.5 cents.

Despite share price headwinds, the company has demonstrated a strong track record for successfully integrating its strategic business acquisitions, which in turn have strengthened its growth prospects.

In a statement on its preliminary FY21 results, Tesserent said it will continue to drive its acquisition strategy.

According to the statement:

There are also a number of potential acquisitions currently in review which if completed, will further add to the inorganic earnings growth and deepen the Cyber 360 model.

Tesserent delivered a bumper FY21 performance with revenue lifting 233% to $67.3 million.

Its normalised net profit after tax was $4.9 million. This is a big improvement on the $5.1 million loss in FY20.

The post Why the Tesserent (ASX:TNT) share price is frozen today appeared first on The Motley Fool Australia.

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More reading

Why is the Tesserent (ASX:TNT) share price down 22% in a month?
Tesserent (ASX:TNT) share price fails to fly despite 230% revenue growth in FY21

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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