NetMotion Wireless is taking steps to go public on the Toronto Stock Exchange through a merger involving a new corporate entity established in the Cayman Islands last month. According to the prospectus, NetMotion Wireless Inc. -- established in the Cayman Islands on February 26 -- will use funds from the public offering to acquire an interest in NetMotion Wireless Holdings -- the parent company of Seattle-based NetMotion Wireless USA.

NetMotion Wireless USA -- which makes mobile networking software used by police departments, healthcare providers, public utilities and government agencies -- was founded in 2001 as a spin out of WRQ.

The company boasts more than 1,600 customers, noting in the filing that it has grown revenue by a compound annual growth rate of 19 percent over the past four years. Sixty three percent of the company's customers are in the state and local government arena, follows by utilities (11 percent) and telecom (9 percent). The largest customers include AT&T, Comcast, Cox Communications, City of Dallas and the Florida Department of Children and Families.

The company notes in the filing:

Our long-term goal is to build a broad-based firm with multiple products and services solving the problems of
mobile workers. In doing so, our objective is to develop or acquire products for market segments where it is possible to achieve a leadership position by solving meaningful problems for these market segments, and to maintain our position as market leader in the Mobile VPN market.

NetMotion -- which employs 112 people and will continue to be led by CEO Bob Hunsberger-- posted revenue of $21.4 million last year. That was up from $17.8 million in 2008. The company continues to lose money, though the net loss was cut last year to $3.3 million. It had $3.3 million in cash and cash equivalents at the end of last year.

The company said it plans to use proceeds from the offering for sales and marketing, to develop new products and for selective acquisitions.

Representatives at NetMotion -- backed with about $30 million from Northwest Venture Associates, eFund, Fluke Venture Partners and others -- declined to comment on the filing. Underwriters leading the deal include National Bank Financial, CIBC World Markets Inc., Mackie Research Capital Corporation, Canaccord Financial Ltd., Genuity Capital Markets and GMP Securities.