Castellum creates new subsidiary for advanced tech products

VIENNA, Va. - Cybersecurity and electronic warfare firm Castellum, Inc. (NYSE-American:CTM), a $102 million market cap company with annual revenue of $45 million, announced Tuesday the formation of a new wholly owned subsidiary called Castellum Advanced Technology Products, Inc. (CATP). According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.93x.

The new subsidiary will focus on developing technology internally, teaming with other technology companies, and potentially taking equity positions in firms with advanced technologies that could benefit Castellum’s Department of Defense customers.

"Fully and timely leveraging advanced technology is the key to success on the 21st-century battlefield," said Glen Ives, Chief Executive Officer of Castellum, in a press release statement.

The company indicated this move represents a broadening of its strategy beyond technology-enabled services. Castellum stated it believes having greater control over key products will enable it to provide better solutions for defense clients.

The firm also suggested the new subsidiary could potentially increase both revenue and operating margins by adding more value to customer solutions.

Castellum, headquartered in Virginia, specializes in cybersecurity, electronic warfare, and software engineering services for federal government clients. The company trades on the NYSE American exchange under the ticker CTM.

The announcement comes amid ongoing concerns about federal budget approvals and government spending that could impact contractors in the defense sector.

In other recent news, Castellum, Inc. announced the pricing of a public offering of 4,166,667 units at $1.20 per unit, expecting to raise approximately $5 million in gross proceeds. Each unit includes one share of common stock and a warrant to purchase an additional share at $1.22, with warrants expiring 60 days post-issuance. Maxim Group LLC is acting as the sole placement agent for this offering, which is slated to close soon, pending customary conditions. Additionally, Castellum reported the results of its annual stockholder meeting, which included the election of six directors and the approval of amendments to stock incentive and employee stock purchase plans.

In a strategic financial move, Castellum reduced its debt by $2 million, extending the maturity date of the remaining note to December 2027. This restructuring aims to bolster the company’s financial health and support its growth strategy. Furthermore, Castellum reminded holders of 3,355,000 warrants set to expire on May 16, 2025, following a successful equity raise in March. CFO David Bell noted that over 25% of the warrants have been exercised, generating an additional $1.2 million.

CEO Glen Ives expressed confidence in Castellum’s growth trajectory, citing a recent $103 million contract win as a positive indicator. Castellum’s forward-looking statements suggest optimism for revenue growth and new customer opportunities, though they acknowledge potential risks such as government contract cancellations.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.