Bio­met­rics group in sur­prise de­ci­sion to float in UK

Se­curLinx is re­vers­ing into Pole­mos as a quick way of list­ing on the AIM mar­ket

Shares - - DISCLAIMER -

Shares in AIM-quoted cash shell Pole­mos (PLMO:AIM) have been sus­pended af­ter it agreed a re­verse takeover of US-based cy­ber se­cu­rity group Se­curLinx. The deal val­ues Se­curLinx at £17.8m and will be paid for through the is­sue of 51m Pole­mos shares.

Se­curLinx is a spe­cial­ist in bio­met­ric iden­ti­fi­ca­tion. This uses unique anatom­i­cal fea­tures in­stead of pass­words to un­lock se­cure per­sonal ser­vices. Fin­ger­prints, eye scans, fa­cial and voice recog­ni­tion are the most com­mon types.

The trans­ac­tion has raised a few eye­brows among peo­ple in the IT sec­tor, par­tic­u­larly the de­ci­sion to bring Se­curLinx to the UK stock mar­ket.

‘It’s dif­fi­cult to un­der­stand the ra­tio­nale be­hind gain­ing a Lon­don stock mar­ket list­ing for Se­curLinx, given that the US re­mains the sin­gle largest mar­ket for cy­ber se­cu­rity (and bio­met­ric) prod­ucts,’ says Me­gabuyte an­a­lyst In­dra­neel Aram­patta.

‘The com­pany’s main, if not sole source of busi­ness, seems to come from US law en­force­ment or gov­ern­men­tal or­gan­i­sa­tions,’ adds Aram­patta.

Pre­sum­ably, Se­curLinx would ar­gue its small size ide­ally suits it to AIM, where list­ing costs are lower and smaller com­pa­nies have bet­ter op­por­tu­ni­ties to build pro­file with in­vestors.

Rev­enue fig­ures were not made avail­able but most re­cent es­ti­mates sug­gest around $5m. The com­pany did con­firm a $0.55m loss for the cal­en­dar year 2016.

‘We are very pleased to have found an op­por­tu­nity which com­bines low capex, a very fast grow­ing mar­ket, an ex­pe­ri­enced man­age­ment team and an im­pres­sive or­der pipeline,’ says Pole­mos chair­man Hamish Har­ris. (SF)

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.