West Perth based exlorer Drake Resources is now officially about to become a technology company after completing extensive due diligence on Israeli based cyber security firm Genome Technology Ltd.
Both Drake and Genome have completed their respective due diligence programs and a reverse takeover of Genome by Drake will now occur.
Drake describes Genome as a human cyber-risk governance security solution organization that accounts for the weakest link in the cyber security chain – an organization's staff.
Genome owns some unique proprietary technology that uses an algorithm to “profile” client company employees in order to assess their cyber security risk to the business.
It is based on the theory that an organization’s cyber security can easily be compromised by the online and other activities of its people, even if they are acting in a non-malicious way.
The algorithm assesses and profiles the activities of each employee and then applies an individual security risk threat level to each of them.
The next step in the process is for the system to then provide customized mitigation, intelligence and training solutions to reduce the risk posed by each individual employee.
Drake says that one of the principal markets for Genome’s cyber security product is Government and representatives from both organizations recently engaged with an Australian State Government to get feedback on the product.
The company says that it received feedback to the effect that that Genome’s cyber security offering is required at a Government level to monitor, report on and mitigate the human risk factor within Government relating to innocent employees.
Drake has held early stage discussions with a large Australian risk management consultancy that designs processes and systems to integrate risk into an organisation’s objectives and they have expressed interest to market and distribute the Genome solution.
The risk management firm currently works with around 20 multinational companies employing millions of people collectively.
Genome has also signed a Letter of Intent with a number of global organisations in the insurance, accounting and telecommunications industries, including Howden Broking Group and BDO South Africa.
The terms of the reverse takeover will see Drake acquire Genome for AUD$11 million.
Prior to completion of the acquisition, Drake intends to raise a minimum of $9.365 million and up to A$10 million through the issue of shares at an issue price to be no less than AUD$0.02 per share on a post consolidation basis and they will lodge a prospectus with ASIC and the ASX in respect of the capital raising.
The capital raised will be used to fund the development, implementation and sale of the technology platform worldwide.
With Cyber security on everybody’s mind these days and the price of Nickel tanking over the last year or so, the Genome acquisition might just prove to be a smart investment for Drake.
