The decision is pending shareholder approval in a general meeting on July 19.
The company plans to use the funds to expand into the UK and the United States by setting up companies in which it will hold at least 67%.
“The share capital increase is made in order to expand the issuer’s activity, by establishing two new companies in the United Kingdom of Great Britain and Northern Ireland and in the United States of America, entities that will be responsible for promoting and selling Safetech Innovations solutions and services on foreign markets,” the company said in its shareholders’ meeting notice.
To fund expansion, Safetech plans to issue 1 million new shares with a face value of RON0.2/share. The capital hike is set to start in September.
Safetech estimates international operations will reach a turnover of EUR6 million within three years.
In the first quarter of 2021, Safetech Innovations reported operating revenues of RON6.5 million, up 162% on the year. It had a turnover of RON4.4 million, more than double compared with the first quarter of 2020, and its net profit grew 190%, to RON284,000.
The company targets a turnover of RON20 million and a net profit of RON4.5 million for the full year, citing increased demand for cybersecurity solutions.