The run of technology companies taking advantage of lacklustre mining stocks based in Perth is continuing, with three more backdoor listings expected to be completed this month and another towards the end of the year.
The run of technology companies taking advantage of lacklustre mining stocks based in Perth is continuing, with three more backdoor listings expected to be completed this month and another towards the end of the year.
Listed companies Prime Minerals, White Eagle Resources, Black Fire Minerals, and Lithex Resources are all in the process of coming under new direction with a focus on the technology sector.
The Prime Minerals board has been working alongside the board of data security firm Cocoon Data Holdings to become a new company named Covata.
The merger and company restructure was completed on October 31 and the company began trading on the ASX on Monday.
Chief executive Trent Telford, who founded Cocoon in 2007, told Business News leveraging Prime Minerals’ listing was a the right move for the company.
“The Australian market is hungry for growth stories in technology, and certainly cyber security is a very hot market,” Mr Telford said.
“The level of support from investors has been amazing. It really validates the value and unique differentiators we bring to the technology sector and highlights the enormous appetite for growth.”
White Eagle Resources last week released a prospectus seeking shareholder support for its acquisition of Lunalite International, which is a digital outdoor advertising company with contracts in Melbourne.
White Eagle is seeking to raise $3 million to facilitate the acquisition, after which it intends to relist as XTD.
White Eagle had been struggling, with its latest annual results showing a loss of more than $329,000.
Black Fire Minerals has also lodged a prospectus, seeking to raise funds for its acquisition of Animoca Brands Corporation, which is a developer of games played on smartphones.
Following the acquisition, expected by the end of November, Black Fire Minerals will take on the Animoca name and focus on the game development market.
Graphite-focused explorer Lithex Resources is in the process of changing its focus through the acquisition of digital marketing company Mpire Media, a company founded by technology entrepreneur Zhenya Tsvetnenko, in 2006.
It’s understood the terms of the deal were being finalised late last week.
The backdoor listings follow similar moves by listed resources companies Latin Gold and Macro Energy, which are now focused on the technology sector.
Steven Goh’s social entertainment platform listed through Latin Gold in June and is now the listed entity named migme.
Another of Mr Tsvetnenko’s startup ventures, digital BTC, listed through Macro Energy in June.
The company now goes by the name of Digital CC and has enjoyed a 592 per cent appreciation in its share price since the intention to focus on the bitcoin industry was announced in March.
Another Perth company involved in a backdoor listing, Ziptel, has also has positive response from the market.
Since announcing the acquisition of AussieSim (and intention to rename to ZipTel) former sports merchandise company Skywards’ share price has increased from less than 1 cent to 43 cents per share, prompting queries from the ASX.
