Critical Infrastructure Technologies Ltd. has received an Innovation Certificate for dual-use technology from the Latvian Ministry of Defence, positioning the company to accelerate its European manufacturing strategy. The certificate enables CiTech to formally apply to ALTUM, 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. Upon successful completion of the project, the loan may be eligible for a capital discount of up to 30%, significantly enhancing the company's capital efficiency as it establishes its European manufacturing base. 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 will support the commencement of operations in Liepaja, including securing suitable industrial premises, employing up to six staff, engaging suppliers throughout Latvia and the broader European Union, and building five Nexus 20 units which will all be marketed and sold within Latvia and/or the EU. CiTech is currently in discussions to lease a facility in the Liepaja Special Economic Zone where the corporate tax rate is 4%.
The Innovation Certificate formally recognizes CiTech's dual-use technology and strengthens the company's integration within the European defense and security ecosystem. The establishment of manufacturing capacity in Latvia will support CiTech's growing European presence, complementing its partnerships across NATO's Eastern Flank and its previously announced plans to position Latvia as its European Headquarters.
Brenton Scott, Chief Executive Officer of CiTech, stated that this strategy will fast track operations into Latvia and further entrench the company within the EU. The Innovation Certificate recognizes the dual-use capability of CiTech's technology and provides a clear pathway to accelerate the European manufacturing strategy. The company will provide further updates as the ALTUM application progresses.
This development represents a significant step in CiTech's expansion into European markets, particularly within the defense and security sectors where dual-use technologies are increasingly valuable. The ability to manufacture within the EU provides strategic advantages for serving European clients while benefiting from regional support mechanisms. For business leaders monitoring technology and defense sector developments, CiTech's progress demonstrates how innovative companies can leverage government certification programs to accelerate international expansion and secure competitive manufacturing advantages in key strategic regions.
