Security Matters is cashed up and poised for growth after hitting key milestones in the June quarter
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A company focused on digitising physical objects on the blockchain to enable a circular and closed loop economy, Security Matters (ASX:SMX) has launched into FY22 with strong operating momentum, after securing a number of key business objectives in the June quarter.
Highlighting SMX’s quarterly trading update was the successful completion of a strategic $5.3m share placement, that was heavily oversubscribed by existing institutional investors.
The funding round saw SMX close the quarter with a healthy cash position, as it looks to capitalise on a run of positive news flow with the application of its technology across global markets.
And as the company consolidates growth in the new financial year, CEO Haggai Alon said it will look to leverage its strong balance sheet and operational momentum to “progress ongoing pilot projects into commercial contracts”.
Among the company’s many highlights in Q4 was the implementation of its unique conveyor belt detection system, which gives companies the ability to easily track and re-use plastic waste products.
Using SMX’s digital twin technology, brands and retailers can grade and certify plastic products as part of the global push towards the creation of a circular, closed-loop economy for the global plastics industry.
The detection technology has been designed “to meet the sorting and recycling requirements of major players in the plastics sector”, SMX said.
It can also be applied to different types of plastic (such as rigid or flexible packaging),and provides valuable information on the materials flowing through the value chain to increase recycling efficiency.
Having proved the technology, SMX has started discussions with a pipeline of new clients to clarify terms around the commercial rollout.
On the deal-making front, SMX is also carrying out live testing with a tier-1 multinational tyre company, after completing proof-of-concept testing for its digital authentication technology to track and identify rubber inputs across the tyre supply chain – from plantation sources to re-use/recycling.
Discussions are now underway with the client to implement a commercial rollout.
Rounding out a busy quarter, SMX also continues to lead the shift towards sustainable production solutions in the global fashion and textiles industry.
Operationally, it flagged another key highlight earlier this month when its product authentication technology was successfully deployed to market cotton plants at the seed stage – part of a joint initiative with the Israeli Cotton Board.
Those seeds have now been successfully grown into healthy plants which are generating flowers, in what marks an important new validation of the company’s adaptable platform.
Like its market-leading developments in plastics and rubber, the company’s work with the ICB is a reflection of the adaptability of the SMX technology for use in a range of global industries.
Ongoing R&D activities are progressing in additional sectors, including cocoa, palm oil and soybeans where SMX is engaged in discussions with businesses to potentially deploy its technology across the supply chain.
Commenting on the company’s quarterly achievements, Alon said it reflects the ability of the management team to execute on its broader strategic roadmap.
“SMX will continue to offer its clients the ability to authenticate and verify the origination of their raw materials, as well as transition successfully to a closed loop economy,” he said.
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.