The board of defence contractor XTEK wants to change the company’s name to HighCom Limited, and will take the proposed change to shareholders at the upcoming annual general meeting on November 23.
XTEK listed on the ASX under that name in 2005 as a supplier of security-related products and services, and trades under the ticker code XTE.
Its focus has more recently been on ballistic armour, using an Australian-developed XTClave curing process, and fulfilling a “transformative” international order last year through its HighCom division.
The products were made at Columbus, Ohio, and believed to have been for the battlefield at Ukraine.
HighCom also signed an MoU with Indian conglomerate Tata on ballistic helmets for the Indian market in April.
It acquired US-based HighCom Armor Solutions in 2019.
According to a statement from XTEK on Monday, the board believes a changed name “will better reflect the long-term value creation potential for shareholders now being generated by the Group’s “HighCom” ballistic armour brand, through its increasingly successful commercial business operations with Military, Law Enforcement Agencies, and Government customers, in the US and around the world.
“Accordingly, the Board believes that by aligning the ASX listed parent company name with the US and International subsidiary names it best positions and unifies the Group for its next exciting stage of growth and global expansion.”
The renamed company would trade on the ASX as HCL, and retain the current two-divisional structure. The Technology Division will be called “HighCom Technology” and focus on sales and maintenance support services of drones. This “continues to be an important revenue generating part” of the group, it said, citing a recently-signed ten-year Department of Defence support contract, potentially worth over $110 million.
Picture: credit XTEK