Security Matters has been selected by PepsiCo Europe to promote sustainability across the US giant’s European supply chain, leaning on the Aussie-listed firm’s unique blockchain-tech to identify, sort and pack waste.

PepsiCo says it plans to use Security Matters’ invisible marker system in waste sorting to track closed loop recycling and verify sustainability claims.

The announcement is part of PEP’s initiative to collaborate with six start-ups to promote sustainability in its European supply chain.

“At PepsiCo, we believe in the value of harnessing a digital future to accelerate positive change for our people and planet. We recognise that we have a responsibility to use our resources efficiently and reduce our overall emissions, but we can’t do it alone. By embracing smart collaborations through PepsiCo Labs, we can unlock breakthrough solutions, and play our part in scaling technology innovations. It’s part of our commitment to solving sustainability challenges across our supply chain, and progressing PepsiCo Positive,” Katharina Stenholm, Chief Sustainability Officer at PepsiCo Europe, said.

Haggai Alon, CEO of SMX, said: “SMX is honoured to have been chosen to work with PepsiCo Labs to enable them to identify, track, sort packaging waste.  We look forward to continuing our successful relationship and enabling PepsiCo Labs to enhance their packaging waste recycling to become more innovative, sustainable and tangible through SMX’s breakthrough technology to ‘mark’ the plastic at virgin stage as well as at recycling and sorting facilities – enhancing the sorting capability, resulting in higher rates of plastic recycling content.”

The partnership with PepsiCo follows the massive news last week that the ASX-listed blockchain auditing tech company will be back-ended into the NASDAQ via a SPAC, Lionheart III Corp.

The $US360 million deal values Security Matters (ASX:SMX) at around $US200 million, 14 times its valuation on the ASX.

Total proforma equity value of the combined group is expected to be $US360 million, comprised of the following:

  • US$200 million value for SMX
  • US$126 million of cash in trust with the SPAC if no redemptions
  • US$31 million SPAC sponsor position

Shares in SMX more than doubled as news spread across the bourse.

The firm’s sudden upward trajectory might seem unusual, especially considering its 2021 accounts showed zero revenue, however SMX has been a pioneer in the niche space for many years.

Lionheart’s commitment, while impressive, still allows its SPAC investors to retain the right to trim their positions, which could mean that the final deal values the company at significantly less. Today’s ASX stock price is 2.5 times the pre-SPAC announcement figure.

 

The new players in the Capital America team

SMX is a self-described start-up focusing on traceability in recycling and the circular economy.

The team provide brand protection, supply chain integrity and as a blockchain-focused tech-firm, the SMX -technology has been tagged as “The Intelligence of Things”, which is basically a comprehensive ecosystem of track and trace for keeping a supply chain’s integrity tip top by providing quality assurance solutions that can be used for raw materials and end products.

The technology comprises a chemical-based, hidden “barcode” system with a “reader” to identify these codes, and a blockchain record to store and protect the ownership of data.

The Israeli-headquartered firm developed a blockchain-powered recycling conveyor that identifies plastics during the recycling process using its chemical marker.

SMX says the marker allows a digital twin to be stored on a blockchain network, which in turn enables product identification and traceability.

 

Demanding

Demand for the services provided by Security Matters is rising fast as established multinational companies explore new and exciting ways to tap into the blockchain and leverage the unique tech.

The company who was awarded the 2021 Global Waste Management & Recycling Digitalization Technology Innovation Leadership Award by globally respected reputable consulting company, Frost and Sullivan.

The company’s ability to certify materials and provide automated auditing which assists companies in reducing time and resources burden of complying with regulations such as the UK’s Plastic Packaging Tax (PPT), which came into effect in April.

The tax hit UK manufacturers or importers of more than 10 tonnes of plastic packaging in a 12-month period.  The PPT is levied on plastic packaging containing less than 30% recycled plastic at a rate of £200 per metric tonne.

 

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.