Biometric Security Technology, Global Technology Sector
All you need to do to use the technology is look at an image on your mobile phone screen or ATM screen. A camera takes a photo of the image reflected in your eye. You are allowed to proceed, to make a call, or withdraw cash.
Wavefront Biometric Technologies (WBT) has "back-doored" through iron ore explorer Nemex Resources, who currently own 20% of WBT. NXR may purchase up to 51% of WBT through three more development tranches. The next 10% tranche is conditional on implementing the technology in a mobile device. This has been done, although not formally reviewed by NXR directors. This tranche is $625,000 for an additional 10% of WBT. Directors have until mid-August to formally proceed.
The technology appears to be significantly de-risked. Of course things can still go wrong.
The final two tranches to get from 30% to 51%, require $2.75m to be paid to WBT. I assume 55m shares are issued at 5c per share, giving 212 million shares in total.
A low-ball value for the technology based on previous transactions for biometric security products is $50m. NXR's 51% share is worth 12c per share on this basis.
Current share price is 2.4c. It's my highest conviction call for a long time. Management and development personnel come from CSIRO, major Australian banks, surgical optometry designers, optometry university departments.
