They are among nearly 40 primarily tech companies – including 17 based in Perth – to have completed backdoor listings on the ASX during the past two years; and there are plenty more set to follow.
Norwood’s share price shot up this month to a high of 11.5 cents, after raising $5.5 million at 2 cents per share ahead of its listing in June.
Similarly, ResApp’s share price rose to 12 cents after raising $4 million at 2 cents per share.
They join the likes of 1Page, migme, and ZipTel in delivering big share price gains after reverse takeovers of cash-strapped mining companies.
The latest Perth tech firm to complete a backdoor listing was cloud-based video e-learning platform, Velpic.
Its shares jumped to 7.2 cents after relisting last Thursday, delivering a quick gain for investors who subscribed for $4 million at 2.5 cents per share.
Editor's note: This article was originally published in the print edition of Business News that went to press on Thurs 12 Nov. Since then, Norwood's share price jumped to 14 cents before the company called a trading halt on Mon 16 Nov. ResApp's share price eased to 11.0 cents while Velpic's shares rose to 8.5 cents.
Norwood has excited the market after releasing updates on the roll-out of its World Phone app, which has been downloaded to iPhones more than 700,000 times since being launched three months ago.
The company said its revenue from World Phone was currently equivalent to $900,000 per annum.
That’s still a small number, but the key is that it’s growing rapidly.
Norwood is set to launch an Android version this month and believes it will benefit from its sales and marketing experience with the iPhone app.
Chief executive Paul Ostergaard said the company had demonstrated it could target and break into markets across the globe, and generate meaningful revenue at the same time.
“All of our metrics – downloads, revenues and acquisition costs – continue to improve, as we build up a detailed knowledge base of the best advertising strategies, markets and revenue generating customers for our product,” he said.
World Phone cuts the cost of international calls by enabling subscribers to use local landline networks.
It also allows travellers to set-up and subscribe for a nearby local number.
ResApp’s share price run followed the release of positive preliminary test results for its smartphone app, which is used for diagnosis of respiratory diseases.
Studies of 338 people using the ResApp device at Joondalup Health Campus and Princess Margaret Hospital were able to differentiate their respiratory condition with a high degree of accuracy.
Chief executive Tony Keating said the results were a significant step forward for its device, which the company is aiming to integrate into telehealth platforms.
“These results ... provide an excellent foundation for our continuing regulatory and commercial discussions,” Dr Keating said.
The company is fully funded to bring its product to market in late 2016, subject to continued success in its clinical trials.
The strong interest in Norwood and ResApp is likely to encourage even more tech firms to seek a backdoor listing on the ASX.
The next listing, due this week, is Fastbrick Robotics, which has completed a $5.75 million raising through Cygnet Capital to support development of its revolutionary automated bricklaying system.
Another six Perth-based shell companies are in the midst of capital raisings ahead of planned backdoor listings.
They are Stratum Metals, which is looking to raise up to $6 million, Chrysalis Resources ($4 million), Palace Resources ($6.5 million), Potash Minerals ($12.5 million), Galicia Energy Corporation ($10 million), and Minerals Corporation ($7 million).
The pipeline of future deals keeps on growing, with eight backdoor listing deals announced in October, while a further three have already been announced this month.