Security Matters Limited (ASX: SMX) is an ASX listed company from the information technology sector based in Melbourne, Australia. It aims to turn into the global record for physical goods, through its technology for asset tracking. Its technology has an ability to mark an object with a chemical-based barcode which is permanent and irrevocable. Also, any object whether it is in a solid, liquid or gas form can be marked utilizing the technology. The barcode is read using the company’s unique reader by recognising the codes.
On 1st May 2019, the company announced that it had signed an agreement with Trifecta Industries Inc for the commercialisation of its trace technology for diamonds. Following this agreement, a new entity would be established, to be jointly owned by the above two mentioned companies, up to a stake of 50% each.
Under the agreement, a total amount of US$500,000 will be invested by the company in four tranches, in a span of 10 months period. The main motive of this agreement is to commercialise and scale up Security Matters' patented trace technology for the diamond industry. This work would primarily be done by Trifecta since it has a huge network within the diamond industry. SMX anticipates commercial trace solution for the diamond to be available to strategic customers from mid-2020.
Trifecta Industries Inc.
Trifecta Industries is a renowned player in the diamond industry, and it has an interest in developing technologies related to diamonds. Trifecta generates some of the best cut and polished loose diamonds, around the globe through several affiliates.
Haggai Alon, who is the founder and CEO of the company stated it is the next step in the commercialisation of the company’s technology from mining to the end customer and expects the commercialisation solution to be available by mid-2020 to select strategic partners.
Other collaborations and ventures
On 4th March 2019, the company announced a collaboration with BASF under which both the entities would be utilising SMX’s technologies within the chemical division of BASF.
In order to tap other markets, the company has also entered into the global agricultural market which is estimated at massive $11.8 trillion.
March 2019 quarterly report highlights
- During the period, the company had completed an oversubscribed placement and has raised $6.2 million before costs (double the minimum subscription).
- It has also completed the testing within the agriculture and electronics sectors.
- A New chief technology officer (CTO) had been appointed, along with the two PhD qualified Chemical Engineers.
- There were new agreements signed with The Perth Mint and CliniCann during the March quarter.
- By the end of the quarter, the net cash used in the operating activities stood at US$811,000, the net cash used in the investing activities stood at US$167,000 and the net cash used in the financing activities stood at US$69,000.
- The net cash at the quarter end was reported at US$1.36 million, with an estimated cash outflow of US$1.21 million for the next quarter.
The market capitalisation of the company is A$54.96 million. The 52-week high and low of the stock is A$0.76 and A$0.2 respectively. The stock of the company is currently trading at A$0.490, down by 2% (As at 1:56 PM AEST). Also, the YTD return of the stock stands at 72.14%.
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