Subiaco-based iron ore explorer Nemex Resources has announced plans to buy all the shares it doesn’t already own in Wavefront Biometric Technologies.
Nemex plans to increase its stake in the biometric technology firm from 40 per cent to full ownership, for an undisclosed consideration it says will result in Wavefront shareholders owning 49 per cent of the issued capital of Nemex post-acquisition.
As part of the acquisition, Nemex will be required to undertake a minimum $5 million capital raising in order to comply with ASX relisting rules.
If the transaction is successful, current Nemex directors will resign from the board and be replaced with five new members, including Wavefront boss Shanny Dyer, who will become managing director of the new company.
The parties are yet to finalise the final board composition.
“The acquisition will consolidate the ownership of Wavefront’s unique biometric technology and ensure the company is fully focused on the successful commercialisation of the technology,” Nemex chairman Patrick Flint said.
Wavefront has developed and patented a biometric technology for reliable and secure authentication of a person’s identity, based on capturing data associated with the eye.
It is currently undertaking a development program with the objective of adapting its technology to a mobile platform and commercialising the product.
“As personal data and identity continue to be hacked and stolen, Wavefront has a unique opportunity to become a solution able to be deployed across multiple platforms to enhance current biometric security systems and build robust environments far more secure than has, until now, been achievable,” Wavefront chair Ms Dyer said.
In April last year, Nemex entered into an agreement to earn up to a 51 per cent interest in Wavefront, but rested on 40 per cent.
Wavefront has engaged Wentworth Group Capital Partenrs and Intrasia Capital to manage the capital raising.
The company expects to be listed on the ASX under its new business model in September.
Shares in Nemex were 4 per cent lower to 12 cents each at 10am.