Special Report: The company’s 4C filing showed SMX is gaining traction as it works towards a global scale-up of its technology.

Security Matters (ASX:SMX), a company focused on digitising physical objects on the blockchain to enable a circular and closed loop economy, has hit the new year with strong momentum, after raising capital and launching a number of new initiatives in Q4.

The company’s latest 4C filing highlighted its strong backing from a number of institutional investors as it looks to scale out its business model.

Along with a $2.1m share placement in November, the company raised an additional $760,000 from Psagot Investment House – Israel’s largest institutional investor – which allocated the funds as part of its ESG investment strategy.

SMX followed that up with another $1.1m placement in December, rounding out a strong quarter on capital markets and bringing total funds raised in the 2020 to an impressive $10.36m.

With strong capital backing in place, SMX also executed on a number of operational milestones, led by the rollout of its 3.0 blockchain platform.

The third-generation platform has the capacity to be an “essential” cog in the growing circular economy across global supply chains.

With a strong balance sheet and revenue momentum, the company is now making “strong progress in its strategic roadmap for the SMX technology to be adopted and scaled up across its strategic market segments globally”.

SMX’s patented technology will allow for “safe and secure revenue flow and transactions, in order to reuse/recycle, buy, sell and communicate with value chain players both upstream and downstream”, the company said.

The product updates immediately flowed through to new revenue generation, as SMX booked a 12-month commercial services contract with Australian company trueGold Consortium Pty Ltd.

trueGold will utilise SMX’s 3.0 blockchain platform along with its unique molecular marking technology, as part of a benchmark mine-to-market solution for tracking the supply chain of gold.

SMX will receive $800,000 in revenue over the course of the one-year term.

And as the company delivers on revenue opportunities, it’s also developing new partnerships across multiple fields.

The December quarter saw SMX open its Sustainability Competence Centre – a networking hub for global fashion brands to trial the company’s technology as part of their waste-reduction practices.

The industry for global textile waste is expected to reach 148 million tonnes by 2030, leaving SMX well-placed to address a critical industry problem.

The company also completed a proof-of-concept trial with Intel, confirming the capacity of its technology to provide an effective solution for the replacement, removal or repositioning of electrical motherboards.

And to round out a busy quarter, SMX also announced a new strategic hire with the addition of Ms Danit Cohen – a qualified chartered accountant — as new Chief Financial Officer.

With momentum building across a range of key-performance metrics, SMX closed Q4 with quarterly revenues of $US198,000, a gain of 23 per cent from the prior quarter.

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.

 

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