Israeli technology company Security Matters is planning to list on the ASX via an initial public offering (IPO) on 13 September 2018 at an indicative market cap of AUD $18.5-$20 million.
Security Matters is transforming brand liability, authentication, tracking and proactive quality assurance with its technology that permanently and irrevocably “marks” any object in solid, liquid or gas form. The technology was originally developed by the Israeli Government, at the Soreq Nuclear Research Center. It is based on three parts: the chemical-based hidden “barcode” system, along with a unique “reader” to identify the codes, and use of a blockchain record to store and protect ownership data.
The three Co-Founders Haggai Alon, David Rosenblatt and Ed Hofland bring decades of experience in building successful companies in both Israel and Silicon Valley. The company is also backed by a experienced team of Corporate Advisors and Non-Executive Directors.
“Haggai Alon, Co-Founder & CEO, Security Matters Ltd”
Haggai Alon, Co-Founder & CEO of Security Matters, said: “We are supported by a highly astute Advisory Board, led by Major General Ami Shafran, Chairman of Elsight Trading (ASX: ELS) and a team of experts that have significant corporate experience in leading highly successful companies globally and have supported companies that have been successful listing on the ASX.”
“The Company’s vision is to be the link between the digital economy and the “real economy”, providing a “digital twin”* on the blockchain of physical goods. We have developed a suite of integrated solutions to solve both authentication and track and trace challenges in order to uphold supply chain integrity, and provide quality assurance and brand accountability to producers of goods.”
The company is addressing four market opportunities. One area is the global counterfeit market, the value of which stands at USD $1.77 trillion**. By 2020 it is estimated USD $284 billion will be spent by corporations and governments to combat counterfeiting. People’s lives are also at risk from lethal counterfeit pharmaceuticals responsible for the death of 1 million people each year***. The secure packaging market is at US $82 billion****, with an estimate to grow to US $143 billion by 2020.
“We’ve already got agreements in place with companies across different sectors, including diamonds (brand liability), plastics (product authentication), protecting proprietary raw materials (quality assurance). Plus there are a number of potential applications that are already in the pipeline including electronics, gold, art, food and agriculture.”
Security Matters is working with Israeli based Kafrit Group (TASE: KAFR), which has invested USD $500k and is a channel distributor of partnerships for manufacturing and selling solutions to the plastic and packaging market. The Company is also working with Intel (NASDAQ: INTC) on its Intel Ingenuity Partner Program and with BASF (ETR: BAS) on a proof of concept in its Performance Chemicals division. There is a Memorandum of Understanding in place for a solution for the gold sector with Perth Mint (ASX: PMGOLD). To trace the origin of its diamonds, Crossworks Manufacturing (Canada), is building its commercial capability and will invest USD $500K in joint ventures
Head of Corporate Finance at RM Capital, Nathan Barbarich, commented:
“Security Matters is bringing a revolutionary technology to market, which could dramatically alter how physical goods are tracked and managed in the future. We’ve already had a significant amount of interest from Australian investors ahead of the IPO who can see the potential of this new technology.”
* Expression coined by Intel
** This figure is based on the 2015 numbers from Allied Market Research
*** According to International Criminal Policing Association (Interpol)
**** This figure is based on the 2015 numbers from Allied Market Research
About Security Matters
Israeli based technology company Security Matters owns and has commenced commercialising its technology to permanently and irrevocably “mark” any object either solid, liquid or gas, allowing identification, proof of authenticity, tracking supply chain movements & quality assurance for countless products in virtually every industry.
Security Matters’ unique patented technology comprises a chemical-based hidden “barcode” system, alongside a unique “reader” to identify these codes, and a blockchain record to store and protect ownership of data.
