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 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)