Critical Infrastructure Technologies Ltd. (CSE: CTTT) has received an Innovation Certificate for dual-use technology from the Latvian Ministry of Defence, positioning the company to accelerate its European manufacturing strategy through potential government-backed financing. This certification formally recognizes the dual-use capability of CiTech's autonomous mobile communications platforms and strengthens the company's integration within European defense and security ecosystems.
The certificate enables CiTech to apply to ALTUM (www.altum.lv), Latvia's state development finance institution, for funding support toward establishing manufacturing operations in Liepaja, Latvia. Under the ALTUM innovation support framework, CiTech intends to apply for up to €3.0 million in project financing, with the loan potentially eligible for a capital discount of up to 30% upon successful project completion.
This development is significant as it provides a clear pathway for CiTech to establish its European manufacturing base with enhanced capital efficiency. The total project cost is estimated at approximately €4.0 million, with CiTech required to contribute approximately €1.0 million (25%) and the balance funded through the proposed ALTUM facility. The funding would support securing industrial premises, employing up to six staff, engaging suppliers throughout Latvia and the broader European Union, and building five Nexus 20 units for marketing and sale within Latvia and the EU.
The establishment of manufacturing capacity in Latvia supports CiTech's growing European presence and complements its partnerships across NATO's Eastern Flank. The company is currently in discussions to lease a facility in the Liepaja Special Economic Zone, where the corporate tax rate is 4%, and has previously announced plans to position Latvia as its European Headquarters. This strategic expansion comes as CiTech targets the mining, defense, border security/surveillance, and emergency services sectors with its autonomous, high-capacity mobile communications platforms.
Brenton Scott, Chief Executive Officer of CiTech, stated that the Innovation Certificate recognizes the dual-use capability of the company's technology and provides a clear pathway to accelerate its European manufacturing strategy. The company will provide further updates as the ALTUM application progresses, marking a significant step in its commercial expansion within European markets.
