Subiaco-based Nemex Resources has abandoned plans to wholly acquire Wavefront Biometric Technologies, but will instead raise capital and secure a majority stake in the target.
In a statement today, Nemex said it was incapable of satisfying conditions attached to the Wavefront acquisition as a result of delays.
However, Nemex, which already holds a 40 per cent stake in the tech company, plans to invest a further $1.75 million to boost its interest to 51 per cent.
In June, Nemex launched plans to wholly acquire Wavefront and wanted to be relisted under a new name and business model on the ASX by last month.
It followed a deal in April last year, whereby Nemex had planned to earn up to a 51 per cent interest in Wavefront, but rested on 40 per cent.
Nemex has also engaged Subiaco-based Cicero Advisory Services to manage a placement to shareholders to raise up to $5 million.
Ciceo has partially underwritten the placement up to $1.5 million, with the price of the raising yet to be determined.
Meanwhile, Nemex also plans to restructure its board with a new management team led by Darren Patterson as chief executive, and Hui Zhang as a non-executive director.
Mr Patterson has held senior business development roles with companies including Yahoo, Cisco Systems and Wireless PLC, and was most recently the chief executive and co-founder of Australian property investment platform BrickX.
Peter Turner has resigned from the company as a director with immediate effect, while Wavefront boss Shanny Dyer, who was supposed to become managing director of the company as part of the original deal, will no longer take up a board position.
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.
Nemex hopes to be trading on the ASX again by mid-January.