The funding round comes at an important time as the company looks to convert major commercial opportunities across each of its key verticals.

ASX blockchain technology company Security Matters (ASX:SMX) is executing on its next round of growth with a new $3.1m capital raise.

Announced to the market this morning, the placement was priced at 30c per share and was strongly supported by institutional and sophisticated investors.

The capital will be deployed to further strengthen a number of SMX’s existing technology partnerships, as well as additional business development opportunities.


Global growth opportunities

Under the terms of the raise, SMX will also one unlisted option for every two shares issued in the placement, exercisable at 40c per share and expiring on March 31, 2022.

“Upon exercise of each Attaching Option, investors will receive one new ordinary share in SMX and one option exercisable at $0.70,” SMX said.

Participants in the raise will get direct exposure to SMX at what marks a particularly exciting time for the business, as it looks to develop a number of multi-year development partnerships into commercial opportunities.

Among a number of key initiatives, SMX will deploy some of the capital raise to the development of smart-reader technology for plastics conveyer belts.

The market-leading platform will allow for the “identification, authentication and quantification of both virgin & recycled plastics using a conveyor belt reader system” on an industrial scale, SMX said.

That follows recent fieldwork which showed SMX’s SMX’s digital twin technology can be used to mark products at the production stage and verify them at the waste collection stage – a key breakthrough in the global shift to a circular, closed loop economy.

Other components of the raise will be deployed towards the development of SMX’s other core projects – the next phase of its commercial deal with a Tier-1 global tyre company, and its leading role in the transition to sustainable production practices for the global fashion sector.

SMX will move onto the next stage of commercialisation for the use of its technology in the traceability and ethical sourcing of natural and synthetic rubber.

The project is being carried out in partnership with German multinational Continental, a leading global tyre manufacturer.

And funds will also be deployed to advance the next round of development at SMX’s Fashion Sustainability Centre – a joint taskforce it leads that focuses on ethical sourcing and anti-counterfeit measures in the global fashion supply chain.

With its busy development pipeline, SMX continues to execute on its broader strategic vision to implement world-leading product tracing technology.

The company also plans to launch new projects in the wood, forestry and cement sectors.

And with its latest capital raise, the company is now fully funded through to the end of 2022, to convert those tech breakthroughs into long term commercial opportunities in the years ahead.

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.