Critical Infrastructure Technologies Expands Sovereign Manufacturing Capability with Western Australian Acquisition

Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) has entered into a binding term sheet to acquire 100% of a Western Australian precision manufacturing company for AUD $7.7 million, plus standard net debt and working capital adjustments. This strategic acquisition expands the company's advanced production capabilities and secures local sovereign manufacturing capacity for its Nexus 20 and future product lines.

The acquisition brings a profitable business with revenue exceeding AUD$7.4 million and EBITDA of more than AUD$1.9 million, providing a robust earnings base to support accelerated growth in sovereign defence manufacturing. This enables CiTech to scale production, strengthen supply chain control, and advance delivery of its autonomous communication systems. The business has established itself as a leading precision manufacturer supporting defence and heavy industry in Australia since its founding in 1997.

The Western Australian company operates a fully equipped in-house manufacturing facility featuring state-of-the-art laser cutting systems, CNC folding and bending machines, robotic welding technology, and advanced CAD/CAM integration. Certified to ISO 9001 (Quality), ISO 14001 (Environment), and ISO 45001 (Safety) standards, the company has more than 25 years of experience delivering precision sheet-metal fabrication, CNC machining, and engineering solutions for defence, mining, infrastructure, and government sectors.

A critical advantage of this acquisition is the company's DISP accreditation (Defence Industry Security Program), administered by the Australian Department of Defence. This accreditation ensures the company meets rigorous security, governance, and information protection standards required to work with Defence and its supply chain partners. It confirms the ability to securely handle classified information, personnel, and projects, enabling closer collaboration with Defence and enhancing Australia's sovereign capability in advanced manufacturing.

Brenton Scott, CEO of CiTech, emphasized the strategic importance of this acquisition, stating that it provides CiTech with a consistent revenue stream together with instant profitability, making the CiTech Group cashflow positive from completion. The acquisition ensures the group can accelerate production of Nexus 20 and future product lines while strengthening Australia's sovereign industrial base. The founders will remain with the business through a structured transition and integration period to ensure operational continuity and maintain high-quality standards.

The transaction reinforces CiTech's commitment to building a sovereign Australian manufacturing ecosystem capable of supporting rapid-deployment systems for defence, emergency response, and secure communications. It complements CiTech's growing network of international partnerships, including collaborations with Babcock International and Terma, and the establishment of an EU presence in Latvia, further expanding its reach across NATO's Eastern Flank and allied markets. The transaction remains subject to due diligence and finalisation of a Share Purchase Agreement, with completion anticipated within 90 days of the term sheet's execution.