GlobeX Data sees strong interest in secure communication products as work-from-home population balloons

Offers all-in-one data security services in a single, secure platform with information stored in Switzerland Blue-chip partners include America Movil, the third-largest telecoms operator globally with over 300 million subscribers Cybersecurity market set to exceed US$300 billion by 2024  What Globex data does: GlobeX Data Ltd (CSE:SWIS) (OTCMKTS:SWISF) (WKN:A2PN34) is a cybersecurity and Internet privacy provider of Swiss-hosted solutions for secure communications and secure data management. The company distributes a suite of secure cloud-based storage, disaster recovery, document management, encrypted e-mails, and secure communication tools. It sells its products through approved wholesalers and distributors, and telecommunications companies worldwide and also serves consumers, businesses and governments worldwide. GlobeX Data's privacy solutions are all hosted in Switzerland, protecting users' data from any outside data intrusion requests. In Switzerland, the right to privacy is guaranteed in article 13 of the Swiss Federal Constitution. The Federal Act on Data Protection (FADP) of June 19, 1992, (in force since 1993) has set up a strict protection of privacy by prohibiting virtually any processing of personal data which is not expressly authorized by the data subjects. The protection is subject to the authority of the Federal Data Protection and Information Commissioner. Under Swiss federal law, it is a crime to publish information based on leaked "secret official discussions." In 2010 the Federal Supreme Court of Switzerland found that IP addresses are personal information and that under Swiss privacy laws they may not be used to track Internet usage without the knowledge of the individuals involved. The company's Sekur software solution is a product designed for strategic use by key personnel in large organizations (C-Level and Board Members) and High Net Worth Individuals (HNWI) and geared for users sensitive to privacy and security.  Sekur includes SekurMessenger as part of a bundle of email, messaging and file transfer into one app solutions, and includes the company’s latest SekurMail technology. It includes a proprietary anti-phishing and privacy feature called SekurSend which lets a user send an email to any other recipient, whether they have Sekur or not, in full privacy and security as the email never leaves Sekur‘s encrypted email servers based in Switzerland. The recipient can then click on the notification and reply in the same manner using SekurReply, without the recipient having to register for a Sekur account. The sender can also decide to protect any email sent by adding a password to open it, a read-limit and a self-destruct timer as well. Additionally, SekurMail includes full control of email delivery, automatic data export for large Enterprises and an automatic Data Loss Prevention technology (DLP) with real-time continuous archiving. SekurMessenger, meanwhile, eliminates many of the privacy and security risks by not only not requiring a phone number, which would divulge a user’s phone device ID, but also by not social engineering a user’s phone or computer contact list and infecting the contacts by default as well, eliminating a huge loophole in security and privacy. SekurPro offer svoice and video conferencing in addition to secure email and messaging. The company is eyeing a global mass-market launch of its Sekur secure communications solution in April 2021, while the first launch, in the US, is on track to be completed before the end of March.  GlobeX Data CEO Alain Ghiai has said the company is "targeting several million consumers and business executives globally, in search of a secure and private application for all their communications needs". How is it doing: GlobeX Data has made a very brisk start to 2021, adding to its coffers and expanding its reach around the globe as the coronavirus (COVID-19) pandemic focuses companies on the need for greater cyber-security as more staff work from home, while a series of cyber-hacks for Microsoft software has also provided a greater impetus for the company's products. At the end of February, GlobeX revealed that it was in the final stages of signing a distribution deal in South Asia with a large telecommunications operator for its Sekur encrypted email, encrypted messaging and secure file-share solution.  GlobeX said the distribution agreement was with a publicly listed company and, for that reason, the name of the telecom operator would remain confidential until the agreement has been executed and signed by both parties and a formal announcement can be made. It noted that the telecom company operates in several countries in South Asia and has a global mobile subscriber base of over 150 million subscribers. The company pointed out that this would be the second telecom conglomerate it has signed up in emerging markets, already having an agreement in place with América Móvil, the seventh-largest telecom in the world and largest in Latin America. At the start of February, the firm announced plans to launch its Sekur and SekurSafe communications products in Colombia and Panama. The company said it expects the release to take place early in the second quarter of 2021 in partnership with Micronet, it's Latin America cybersecurity distributor. Micronet, which is headquartered in Spain, manages a network of 3,000 resellers in 11 countries through Central and Latin America. In the same month, GlobeX also announced its first distribution deal in Australia, signing an agreement for its Sekur communications product with an IT managed security provider to start sales in the Sydney area. The agreement is part of its wider strategy to expand in Australia and New Zealand, the company said. At the start of March, GlobeX revealed that it had been receiving an increased number of inquiries about its secure communications solutions over recent weeks. The company attributed the uptick to major security breaches on Microsoft Exchange servers and business emails. On March 16, GlobeX revealed that it had received a new order for its Sekur technology from stem cell therapy company, Hemostemix Inc. The company said Hemostemix was looking for an alternative to Microsoft Office365 for a secure and private communications solution in order to communicate with regulatory authorities, such as the US Food and Drug Administration (FDA). On the financing front, at the start of the year, GlobeX announced an oversubscribed C$1.08 million private placement consisting of 9 million units, at a price of C$0.12 per unit, with the company's CEO and CFO participating in the placement with subscriptions of 2,017,355 units, or almost 23% of the total offering. Net proceeds to the company were C$999,500. Then on March 22, 2021, the group announced that it had secured firm commitments for a further C$1.25 million in equity financing. Each unit in the financing consists of one GlobeX common share priced at C$0.30 per share, and one-half of one share purchase warrant. Each full warrant will entitle the holder to purchase a share at a price of $0.50 per share for a two-year term. The company's CEO also participated in the latest private placement with subscriptions for 1,750,000 units, or almost 42% of the total offering. GlobeX said the proceeds of the financing will be used to “accelerate the marketing of the company's Sekur encrypted email and messaging solution to the US market, and for general purposes.”  In January, Globex Data also announced the start of trading in its shares on the Frankfurt Stock Exchange. The company said it anticipated that the Frankfurt listing would help increase trading liquidity and facilitate investment in the company by institutional and retail investors across the European Union and Switzerland. Inflection points: Imminent US launch of Sekur services secure communications solution Global mass-market launch of Sekur in April Further deals with biotech and medical research companies What the boss says: In a March statement, GlobeX Data CEO Alain Ghiai said: “We have been educating our clients for the past several years on the dangers of the ‘everything connected’ Big Tech movements. We have always preferred a more cautious approach of creating an independent platform, not connected to Big Tech and not using open-source coding, for greater security and privacy. This strategy is now showing its fruits, as the scandals of WhatsApp breach of privacy and Microsoft hacks privacy are now getting the attention of more business users.” He added: “Security and privacy are becoming a global concern, with the latest Microsoft business emails and exchange servers being attacked, and the new WhatsApp rules to share all users' data with Facebook; and we plan on capitalizing on this concern as much as possible and offer the privacy and security businesses and consumers deserve.” Contact the author at jon.hopkins@proactiveinvestors.com