Biggest Israeli institutional investment fund makes ESG investment in Security Matters
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Special Report: Brand protection company Security Matters (ASX:SMX) has successfully completed a $760,000 private placement to Psagot, Israel’s largest asset management and institutional investor.
The capital raising is in addition to a $2.1 million private placement announced in November, a $5 million placement in March and a $1.5 million follow-on round, also in March.
In total, Security Matters has raised $9.26 million for the year, significantly strengthening its balance sheet and giving the company a financial runway to mid-2022.
The funds will be used to accelerate speed of adoption and commercialising of SMX’s technology across its target market segments – everything from ethical mining to fashion and cosmetics to food security.
Security Matters says that by being able to create a digital twin for every physical object, the company enables different players in the value chain of production to create a global ledger of physical goods, resulting in new business and revenue streams.
Security Matters’ end-to-end technology solution allows companies to apply a permanent mark to any object – either solid, liquid or gas. A combination of over 500,000 marker molecules ensures that each mark is unique.
A patented sensitive reader receives a response signal from the marker, and a patented algorithm returns information on the product retrieved from the blockchain.
This process records datasets through the supply chain, ensuring proof of authenticity and quality assurance. It allows for visibility of supply chain movements and ownership can even be transferred.
“Psagot’s investment is pivotal to SMX, as a recognition by a major institutional ESG fund, of SMX’s commercial potential as a disruptive technology for companies and industries transitioning from linear business practices to the circular sustainable economy,” says Security Matters founder and chief executive Haggai Alon.
Alon says the placement means Israel’s largest asset manager has endorsed SMX as a potentially profitable long-term investment opportunity in its environmental, social and corporate government investment (ESG) portfolio.
“SMX is an attractive investment that will be considered seriously by ESG funds, as it addresses the issue of sustainable circularity directly and supports the creation of long-term value and provides a sustainable competitive advantage to a number of different companies across a variety of industries,” Alon says.
“We believe this will be the first of many ESG investment portfolios to take an interest in SMX and its commercial offerings.”
The EGS investment is in recognition of the real-world track record of Security Matters’ technology, which is being deployed in various jurisdictions. Most recently SMX has spearheaded the data management related to circular economy business models with its third-generation blockchain launched three weeks ago.
As previously reported, Security Matters recently launched a new digital platform that’ll be a key enabler for the new equilibrium circular economy.
Security Matters has launched this fully commercial third-generation platform in collaboration with R3 and Quantum Crowd.
The platform aims at building on the principles of sustainable development and responsible consumption, enabling a transition from a linear economy to a circular one.
The blockchain platform will provide for safe and secure revenue flow and transactions, allowing value chain players both upstream and downstream to buy, sell and communicate in a secure manner.
This article was developed in collaboration with Security Matters, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.