On 4 March 2019, Security Matters Limited (ASX: SMX), a blockchain Information Technology company, announced its collaboration with Performance Chemicals division of BASF SE. It has started the feasibility study as well.
Security Matters’ technology to permanently “tag” any object either solid, liquid or gas, allowing identification, proof of authenticity, quality assurance and tracking supply chain arrangements .
On the other hand, BASF is one of the leading chemical companies, with more than 115,000 employees and more than 400 production sites with a presence in most of the countries across the world. The Performance Chemicals Division is engaged in the production of customized products for many sectors from mining and the fuel industry to plastics processing.
Based on this agreement, both the parties SMX and BASF, will be accessing the SMX’s technology within the Performance Chemicals Division as well as the myriad products that are being produced in that division.
Haggai Alon, the Founder and CEO of SMX stated that the commencement of the BASF project is an indication that the company has potential to execute its growth strategy as well as a proves how leading global companies are considering SMX as the answer to questions regarding the industry integration as well as the brand authentication.
On 21 February 2019, the company achieved a landmark where it created a new global standard for technology integrity by completing a 24 months extensive test and feasibility studies which concluded that SMX is the first and only technology capable of validating and authenticating all aspects of electronic components and systems. It is the only technology that is flexible and can be incorporated into the process of production for marking, tracking and can also authenticate electronic systems and components.
On 22 November 2018, while providing the company update, the CEO Mr Haggai Alon highlighted that the company was under negotiations with BASF regarding the proof of concept project.
Not only in the Chemical industries, but SMX has also entered into the global agricultural markets of $11.8 trillion by entering into proof of concept’ project with an Israeli-Dutch seed maker company, Hazera Seeds. The best part of the technology used by SMX is that it enables any solid, liquid or gas to get marked invisible and can be read by the use of a proprietary reader and also cannot be reversed using chemical barcode.
On 4 February 2019, SMX completed its Phase II seed solution testing, and they are also progressing towards the commercialization phase. The completion of Phase II of the seed solution testing represents the company’s farm-to-plate growth strategy. Here too, the technology of SMX in the agriculture sector proved the technical expertise which could be successfully incorporated into the seeds during the entire process cycle without hampering the quality of the seeds. Phase III of the testing is expected the begin in Q2 2019 and executed by June 2019. This is an indication of full agricultural commercialization and will result in revenues generation once it gets completed.
Since the inception of the stock on ASX, it has generated a return of 73.17%. After the collaboration agreement with BASF, the stock skyrocketed by 18.31%, settling the day’s trade at A$0.420 (4 March 2019), up by 0.065 points as compared to the previous trading day’s closing price. The company has a market capitalization of A$34.61 million and approximately 97.5 million outstanding shares.
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