Security Matters enters ‘commercial discussions’ with major player following pilot project success
Link copied to
Special Report: Security Matters (ASX:SMX) has kicked off all-important commercial talks with Israeli company Ambar, a major player in the $US18.5 billion global animal feed market.
In December, Security Matters set off to prove its disruptive tech could be incorporated into Ambar’s animal feed — via a drop-in solution during the production process – to enhance supply chain management and combat counterfeit and quality issues.
Security Matters’ tech allows any solid, liquid or gas to be invisibly and irrevocably ‘marked’ using a chemical-based barcode, and ‘read’ using a unique proprietary reader.
It’s a safe, effective and unique way to track items, from raw materials through to manufacturing and sale.
The Ambar pilot project was a success and is part of the company’s strategy in implementing global standards for food safety and liability.
Using independent verification, Ambar concluded that the tech could be used without affecting its animal feed properties, production processes, or costs.
The ‘markers’ can also be read indefinitely using a proprietary reader.
The next step is for Security Matters is to turn this successful pilot into a commercial deal.
SMX and Ambar have now entered commercial discussions regarding “future collaboration agreements”, due for completion during the third quarter this year.
This is a huge milestone for the company, Security Matters founder and chief executive Haggai Alon says.
“This has progressed us towards commercialisation within the animal feed/agriculture sector,” he says.
“Now that we have demonstrated how impactful our technology will be for the sector, we are actively targeting the EU and Australian markets.”
Ambar said it continued to test and implement new and innovative technologies to ensure it retains its leading position in the market.
“Ambar is delighted to have such a great working relationship with SMX and is certain SMX’s technology has a significant amount to offer the agriculture sector,” the company said.
The Ambar project is just one of several recent wins for the “sector-agnostic” Security Matters.
Right now, the company is progressing a number of projects towards commercialisation in the agricultural, chemical, diamond, electronics, finance, cannabis, and mining sectors – just to name a few.
Respected TMT Analytics securities researcher Marc Kennis recently reaffirmed a target price of $1.13 for Security Matters, saying there was plenty of promise if its pilots lead to commercial deals.
“For a lot of these industries, keeping an eye on its entire supply chain is a challenge,” he says.
“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.