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Norwood Systems begins trading via AU$7.5m reverse takeover

The Australian roaming telecommunications service has listed on the ASX following a successful capital raising of AU$5.5 million.

Perth-based cloud services and roaming telecommunications provider Norwood Systems has begun trading on the Australian Securities Exchange (ASX) via a reverse-takeover process of Monteray Mining Group.

The newly listed firm raised AU$5.5 million in capital ahead of its listing.

In December last year, the West Australian mining group announced that it had entered a binding agreement with Norwood to acquire 100 percent of the company. The acquisition set Monteray back AU$7.5 million.

The listing sees Monteray Mining Group now trading as Norwood as part of the takeover.

Founded in 2011 by local entrepreneur and now chief executive officer Paul Ostergaard, Norwood has focused on the business traveller niche.

The company's main offering is its Corporate Roaming Network Access (CORONA) platform, which is targeted at enterprise and government clients. According to Ostergaard, the technology is currently being tested by more than 30 large organisations in six continents around the world.

"Global travel is rising inexorably, with roaming spend by leisure and corporate travellers exceeding $55 billion today and forecast to increase to $80 billion by 2018," the CEO said.

According to Ostergaard, the newly listed company is currently in the final stages of testing its latest product, World Phone, a consumer-targeted roaming technology that will be available for non-business customers.

Western Australia and the ASX have seen a trend of reverse takeovers in the mining sector; last year, Australian cloud provider Bulletproof completed its reverse takeover of mining company Spencer Resources, listing on the ASX as Bulletproof Group Limited; and Australian software security startup Cocoon Data found itself listed on the ASX as Covata Limited after a reverse takeover of Prime Minerals.