Etion sells shares to support digital thrust. The digital technology group has sold a 12.4% stake to Douglas Investments as it raises capital to expand its digital security businesses.

Etion has sold shares worth R27.3 million to help strengthen it digital security businesses.

The 70 million shares in the digital technology group were sold to Clive Douglas Investments at 39c each, a 3.8% discount to the 30-day weighted average traded price of its shares prior to the issue. The stake represents 14.16% of issued share capital prior to the general issue and 12.4% after. Shareholders authorised Etion to issue up to 50% of its issued share capital for cash at its annual general meeting in September.

The investment by Douglas Investments is intended to strengthen Etion's thrust into cutting-edge digital security innovation, following its acquisition of cybersecurity specialist, LAWTrust, in June 2018," the group said.

In June, Etion bought cybersecurity specialist LAWTrust for R109 million and said it was targeting new markets including Australasia and western Europe for products such as cybersecurity as it grows international revenue. It already has a presence in the Middle East. It has integrated LAWtrust into its Etion Secure division.

Weaker SA markets last year resulted in a 29% decline in group revenue to R573 million for the year to end-March, while headline earnings per share halved to 7.29c.

Its shares ended 9.5% down at 38c yesterday.