icetana to build on SoftBank deal after $4m raise

Perth-based surveillance software firm Icetana AI has raised $4 million in an oversubscribed placement to continue its growth in key markets such as Japan and the Middle East.

The company led by Kevin Brown, which develops self-learning artificial intelligence software that detects unusual or interesting events in large surveillance networks, announced today that it has received funding from institutional and sophisticated investors.

Designed to scale, its technology eliminates the need for human operators to monitor thousands of video streams; and the need for manual rule configuration in camera stream setups.

Approximately 125 million new shares were issued under the raise, which was offered at 3.2 cents per share, a nine percent discount to the five-day volume-weighted average price.

Icetana AI CEO Kevin Brown said the oversubscribed placements showed investors’ confidence in the company.

“This capital raise positions Icetana AI to accelerate its global growth strategy, particularly by scaling our partner network and expanding sales capacity in key markets,” he said.

“With increasing demand for intelligent, automated security solutions, we believe icetana AI is well positioned to capitalize on the significant market opportunity ahead and drive growth in recurring revenue.”

The company said the funds will also be used to continue development of its Antara Core technology, which offers on-site server hosting for AI surveillance software as opposed to cloud-based services.

Icetana AI shares (ASX:ICE)

This is a play that could see Icetana’s technology used in some of the most sensitive industries by offering more comprehensive data protection and sovereignty controls.

Templar Corporate acted as lead manager for the placement.

Icetana currently operates 19,000 cameras at more than 70 sites in 15 countries.

It was previously supported by the likes of Laurence Escalante and WorleyParsons founder Peter Meurs.

Investor confidence comes after a tumultuous year for the company.

Shares are currently trading at 3.5 cents per share, off a 2025 high of 5 cents per share.

The drop comes as uncertainty remains over the future of the $1.7 million contract for Iraq’s safe city project in Baghdad.

The contract was first secured with HTE Electronics Trading LLC in 2025.

Under the agreement, Icetana will provide its artificial intelligence video analysis software to manage surveillance in the Iraqi capital.

But in a statement released in September and reiterated in its interim results in February, the company said there were concerns about the future of the project.

In September, “icetana AI attempted to contact High Tech for clarification and to confirm a revised distribution schedule. The company has yet to receive a response,” it said.

“icetana AI remains included in the project scope, but project implementation risks remain due to wider ecosystem dynamics.

“Based on the above, there is material uncertainty regarding both the timing and eventual realization of revenue from the Safe City project.”

Interim results published in late February were promising despite contract problems in Iraq.

Recurring revenues increased 43 percent to $1.3 million in the first half; Margins also grew.

An agreement was also signed with Japanese robotics giant Softbank Robotics Group Corp during the year, initiating a three-year research and development partnership.

Kenichi Yoshida, CEO of the Japanese technology giant, was added to icetana’s board of directors as part of this agreement, while the Tokyo-based company also became the exclusive distributor of icetana AI in Japan.

SoftBank also became the firm’s second-largest investor, with a 17.6 percent stake.

This deal also earned Icetana its largest domestic contract to date, a five-year, $376,000 deal with Millennium Services Group; A SoftBank-controlled security and cleaning services provider.

This month’s raise is the first since Perth billionaire Laurence Escalante fully undertook a $2.65 million settlement through his office, Lance East Office, in January 2025.

This increase was to help the company expand in Iraq under the Baghdad Safe City project; He says he currently has concerns about the viability of the project.

Mr. Esclante, the founder of VGW, first invested in Icetana in 2022 when venture capital fund Yuuwa Capital exited its investment.

The underwriting agreement in January 2025 increased its stake in the firm from approximately 17 percent to 37 percent.

The subsequent SoftBank deal reduced its assets to around 30 percent.

This is believed to come from Mr. Escalante’s connections to Icetana CEO Kevin Brown; Prior to joining Icetana, Mr. Brown worked at VGW for six years in several key executive roles.

Curtin University, the institution where Icetana technology first emerged, still owns a 3.5 percent stake in the company.

Icetana also has backing from Macnica Inc., which is listed on the Tokyo Stock Exchange.