Drake joins tech wave

Shares in West Perth-based Drake Resources have doubled in value on news the company is planning to exit the resources industry by acquiring an Israeli tech company for $11 million.

The gold and silver explorer today announced plans to acquire human risk governance company Genome Technologies for 518 million shares and $US440,000 in cash.

Genome’s technology profiles companies’ employees and provides insights to determine where possible cyber-attacks targeting specific staff members may occur.

Under the terms of the deal, Drake will wholly acquire Genome and adopt its business model, and relist on the ASX.

In order to comply with ASX relisting rules, Drake will be required to complete a minimum $9.36 million capital raising at no less than 2 cents per share.

If the deal is successful, Drake board members Bob Beeson and Jay R Stephenson will resign from the company, along with chief executive Jason Stirbinskis, while chairman Brett F Fraser will remain as a director.

Incoming board members will be representatives of Genome – Rani Lifshitz as chairman and Amir Rasilevski, Harel Borovik and Zion Osmo as directors.

“There is pressure on company boards and organisations generally to consider cyber-attacks in their governance review since it is emerging as a significant, growing risk becoming more difficult to contain, quantify and insure against,” Mr Fraser said.

“Therefore, this transaction with Genome will provide our shareholders with a fantastic opportunity to participate in the exciting cyber security market offering strong prospects of growth.”

The company plans to be trading under its new business model by mid-May.

Drake shares were 100 per cent higher to 4 cents each at 10:30am.