Cocoon Data poised for public listing

Australian data security provider Cocoon Data expects to list publicly on the ASX by October 30, following an oversubscribed share offering and the satisfaction of bid acceptance conditions for its target company Prime Minerals.

Australian enterprise data protection provider Cocoon Data is poised to list on the Australian Securities Exchange by October 30 in a reverse-takeover manoeuvre, after target company Prime Minerals fulfilled its bid acceptance conditions of the takeover.

Prime Minerals told shareholders on October 8 that it has satisfied the acceptance conditions of its off-market takeover offer for Cocoon Data Holdings, putting the Australian data security player a major step closer to listing on the Australian Securities Exchange (ASX).

Sydney-based Cocoon Data, which owns and operates digital security business Covata, announced that it had entered into an AU$57 million binding agreement to merge with the publicly listed mining company and list as Covata Limited by September.

Although the company has missed its initial September window, Prime Minerals' announcement this week that it has fulfilled the bid acceptance conditions of its takeover offer puts Cocoon Data closer to its goal, which it expects to hit by the end of October.

Prime Minerals also told its shareholders in a statement (PDF) that the ASX has conditionally confirmed that it would re-admit the company to the official list and terminate its suspension from the official quotation of its shares. Reinstatement to public trading on the ASX is expected to occur on October 30.

The announcement comes just a few days after the listed mining company told shareholders in a statement (PDF) that its offer of 75 million new shares to raise the AU$15 million necessary for the takeover closed oversubscribed.

Cocoon founder and chief executive Trent Telford said at the time that the funds raised would be pumped into marketing the company's digital security platform locally and overseas.

"We are very pleased with the outcome of the equity-raising process," said Telford. "The funds raised will be used to further commercialise Cocoon's unique software security technology platform and accelerate Cocoon's global marketing efforts."

Covata, a portmanteau of "covert" and "data", is the sales and marketing subsidiary — as well as the trademark — for Cocoon Data's security offering, developed by Telford.

It already claims an office in Washington DC, which is headed up by CEO Charles Archer, from where it plans to ramp up its US profile and partnerships.

Archer, who is a former assistant director of the FBI, told ZDNet in July that the company is setting its sights on the US financial sector, and will continue to build its partnerships with government contractors.

Cocoon Data's listing of Covata Holdings on the ASX will be the latest in a series of reverse takeovers conducted by local technology companies, many of which have targeted listed mining company shells in order to go public.

At the end of April, Australian enterprise cloud services provider PRM Cloud Solutions mounted a reverse takeover of ASX-listed mining exploration company Minerals Corporation.

In October last year, Bulletproof announced that it was conducting a reverse takeover of Spencer Resources Limited.