Shareholders in Biometrics could be forgiven for wondering what happened to their security technology company, which has undergone significant upheaval since its November 2003 float.
Biometrics looking for answers
Shareholders in Biometrics could be forgiven for wondering what happened to their security technology company, which has undergone significant upheaval since its November 2003 float.
The troubles began in mid-March with news that the executive arrangements of Bradley Jorgensen and John Cross, creators of the company’s fusion of fingerprint, facial recognition and smart-card technology, had been terminated, and that Mr Jorgensen had left the board.
That sparked a chain of events that resulted in the company leaving its offices, its entire inaugural board being replaced, a legal letter arriving from Canadian technology player Imagis, the loss of one of the company’s technology partners, and Biometrics’ share price sinking to 7 cents.
When Biometrics listed on the Australian Stock Exchange on November 20 2003 at a price of 23 cents, having raised more than $2.6 million, its board was chaired by Ray Badnall and had Mr Jorgensen, Mr Cross and Lewis Cross (no relation of John Cross) as its directors, and Blair Sergeant as company secretary.
Mr Badnall and Mr Sergeant, the last of the inaugural board, left on June 1 to be replaced by Bob Roget as executive chairman and Kim Hogg, a partner with Mr Sergeant in accounting firm Anthony Ho, as company secretary.
There is some confusion, however, about what transpired before the departure of John Cross and Mr Jorgensen.
John Cross is overseas and could not be contacted for comment, while Mr Jorgensen said he was prohibited from commenting due to a confidentiality agreement signed when his employment contract was terminated. The former and current Biometrics directors WA Business News was able to contact either say they do not know about the arrangements or are vague on the details.
Mr Roget, a significant Biometrics shareholder and a partner with Lewis Cross in consulting firm Corporate Capital Group, said he was in the process of investigating what had happened at the company before his appointment.
“I came into the company because I didn’t like the cash burn,” he said.
“There were all sorts of problems going on but that’s all been stopped.
“The main thing from my point of view is to turn things around and get the company cash-flow positive.”
Mr Roget said he would be going to shareholders with his findings within a month. In the meantime, he said, Biometrics had been largely homeless, claiming the company was literally based “on my mobile” (phone).
However he said new premises were being sought and the company was proceeding with its plan to commercialise its biometric security product.
Former Biometrics director Lewis Cross said both Mr Jorgensen and John Cross had their business agreements with the company terminated because of contract disagreements. He would not comment any further.
The problems at the security technology player became public on March 16 with the termination of Mr Jorgensen’s employment contract and a consulting contract with John Cross’ company, Oracle Consulting Services.
With his employment contract ended Mr Jorgensen opted to leave the Biometrics board. John Cross stayed on for about another month.
It is understood both remain significant shareholders in the company.
On March 18, the company received a letter of demand from Imagis for $US216,093, to be met by March 26.
Imagis owns the image management and facial recognition technology that is part of the Biometrics offering.
Mr Roget said Biometrics had disputed that claim, indicating Imagis’ agreement was with Biometric Security Solutions, a company that had John Cross and Mr Jorgensen as directors.
He said he had heard no more about the Imagis claim.
BIOMETRICS 2004
- March 16: Technology founders Bradley Jorgensen and John Cross have their executive arrangements terminated. Mr Jorgensen also leaves the board.
- March 18: Legal letter seeking $US216,093 arrives from Imagis.
- March 22: AAA Barcode ends its technology development role with Biometrics.
- March 31: Roger Henning appointed CEO.
- April 16: John Cross leaves the Biometrics board. New directors, Stevan Vojovic, Mark Pitt and Ian Whyte, appointed.
- May 24: Lewis Cross leaves board.
- June 1: Ray Badnall resigns as chairman (health reasons), replaced by Bob Roget. Blair Sergeant replaced by Kim Hogg as company secretary.
