Security Matters Update

Here’s a rundown of every industry where SMX’s integrity tech could have a positive impact
Tech

2 hours ago | Nick Sundich


First, Security Matters (ASX: SMX) signed an MoU with a blockchain software firm, R3, to develop a new blockchain application. CEO Haggai Alon said Security Matters will offer R3 a “full brand protection and security offering on the blockchain” and said this will be delivered “in a matter of weeks”.

Special Report: It has been a hot start to life on the ASX for tech company Security Matters — shares are trading more than double the offer price — so here’s an overview of its state of play.


Security Matters (ASX:SMX), a brand protection, supply chain integrity and blockchain tech company focused on becoming the global record of physical goods, listed in October last year after raising $6 million in its IPO selling 30 million shares at 20c a pop.


SMX shares have since hit as high as 64c, and were trading at 40c on Monday. Such gains have been driven by the company’s momentum as its technology can be deployed in a wide range of fields.


Marc Kennis, of respected securities researcher TMT Analytics, recently reaffirmed a target price of $1.13 for Security Matters, saying there is plenty of promise if its pilots can lead to commercial deals.


“Security Matters is really becoming quite sector-agnostic,” he told *.


“For a lot of these industries, keeping an eye on its entire supply chain is a challenge. A lot of it is down to manual checks, but here is a company that has technology that is looking to provide a fully-integrated solution, all the way from the farm to the retailer.


“The next step for Security Matters to go to the next level is to turn these pilots into successful, paid, commercial deals. Given they are in so many different sectors talking to so many different people — with more pilots to come — they have put themselves in a very good position,” Kennis added.


“SMX is planning to be a broad-based technology provider, which should result in a diversified stream of revenues from different sectors, limiting the company’s dependency on one single sector.”

The tech behind the noise

Security Matters’ technology allows any solid, liquid or gas to be invisibly and irrevocably ‘marked’ using a chemical-based barcode.

It can then be read using a proprietary reader and stored via a blockchain record, ensuring its security.
This allows parties to keep an eye on moving parts over supply chains.


State of play

It can be challenging to keep up with the rapid newsflow of a company like Security Matters, so we thought we’d provide an overview of all the industries it is involved in, with backlinks where possible.


Agriculture

SMX is working on a proof-of-concept project with Israeli-Dutch seed maker Hazera Seeds, to see if its technology can help provide Hazera with supply chain tracking. That followed a patent application aiming to detect plastic contamination in crops. The tech has successfully passed trials in the background.


Animal feed

As an offshoot of its agricultural work, SMX also has an MoU to test its track-and-trace technology with Israeli animal feed supplier Ambar, which makes feed for livestock, poultry and fish.


Chemicals

The company signed a deal with one of the world’s largest chemical producer, to test SMX’s technology.


Diamonds

SMX signed a deal with Canadian diamond manufacturer Trifecta Industries to commercialise and scale SMX’s technology to ensure supply chain integrity for the diamond industry. The pair will create a joint venture company.


Electronics


Security Matters discovered that its technology is able to be fused into the production and assembly of a range of electronic components, systems and devices, from your TV to your smartphone. It has also secured the support of Intel’s Ingenuity Partner Program.


Finance


The Perth Mint tapped SMX to protect its gold from mining to minting. It is developing a tech solution to mark and track gold from the mine through to the mint’s refining process and into its final products.


Medicinal cannabis


SMX is providing its technology to Australian medicinal cannabis distributor CliniCann, a crucial deal in establishing supply chain integrity in the booming medicinal cannabis market. The pair hope to create a “global standard” for the industry.


Mining

The company recently filed a patent application in the US for the purposes of identification and classification of the characteristics and unique physical signatures of mined materials including minerals, stones and diamonds.


Identity

SMX will embed its technology into ID solutions for a German identity security solutions provider as part of a proof-of-concept study aiming to enhance security and reliability of travel documents.


Plastics

Security Matters is working with global plastic manufacturer Kafrit to develop its trace-and-track technology for the plastics manufacturing supply chain.


Other patents filed…


X-ray analysis
Metals
Access control
Precious stones
Food
Cryptocurrency