Drake Resources Ltd (ASX:DRK) will head for fairer climes with a proposal to acquire an Israeli cyber security firm Genome Technologies Ltd for A$11,000,000.
A binding term sheet has been signed for a largely shares based consideration and a cash payment of US$440,000 will also see Drake seek to raise a minimum A$9,365,000 in equity through a prospectus issue.
Post-acquisition, 518,571,429 shares in Drake will be issued to the vendors in a reverse takeover of the company.
All of the existing board will be replaced except Brett Fraser and the appointment of new Australian board members together with board members from Genome.
Drake’s CEO Jason Stirbinskis will also depart the company.
Genome is targeting first revenue 12-15 months from re-admission on the ASX.
The target market is companies with 500 or more employees across industry and across continents.
Market sources indicate the cybersecurity market is expected to grow from US$77 billion in 2015 to US$170 billion by 2020.
Genome is an Israeli human risk governance company which assists to mitigate cyber threats in organisations related to the human factor of employees.
The human factor is considered the weakest point of an organisations security. Genome’s proprietary technology and unique flexible engine algorithm analyses and maps each employee’s risk level and provides customized mitigation, intelligence and training solutions to reduce the risks.
The process profiles each employee and provides the organisation with the insights to determine where possible cyber-attacks targeting specific employees, may occur, and build controls to mitigate the risk.
Drake will be required to consolidate its issued capital to facilitate a share price of at least $0.02.
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