Tracing and verification solutions provider Dotz Nano (ASX: DTZ) has entered into a $1.53 million agreement with Hong Kong’s Universal Exports Group to supply its ValiDotz security markers to medical face masks required for government stockpiles and national health services.
The markers will be applied to a total 100 million masks to ensure quality and authenticity.
Universal will initially apply the ValiDotz to 30 million masks, with a follow-up order of up to 70 million masks subject to customer demand.
As part of the two-year agreement, Universal will also become the sole and exclusive distributor for Dotz in South Africa and China for face masks, medical gowns and gloves, and other medical protective gear.
In return, Dotz will grant Universal three million unquoted options with an exercise price of $0.048 vesting on a pro-rata quarterly basis with a term of three years.
Dotz’ unique tag, trace and verify solution provides an easy-to-use, on-site detection system to mark, identify, verify and trace quality face masks from original and reliable manufacturers.
The non-toxic security marking solution includes encrypted QR codes which can be read with a smartphone application and are believed to be “virtually impossible” to reverse engineer.
Chairman Bernie Brookes said the agreement will bring benefits during COVID-19.
“This significant agreement clearly demonstrates the strong relevance and business potential of [our] unique technological solutions, aimed at improving worldwide trade during and post COVID-19,” he said.
“With our anti-counterfeiting, tracing and authentication technology, customers can verify that they are using a genuine face mask and avoid risking medical personnel, patients and the general public.”
Dotz is also in the final stages of developing a COVID-19 disinfection verification system where disinfection fluid applied on any surface can be verified to ensure there are no blind spots or neglected areas.
The system uses a Dotz detector to visualise the proper application of disinfection liquids on a surface and can be used on planes, public transport, hospitals, and office buildings.
Mr Brookes said the company is also researching additional applications to fight COVID-19, including in the area of diagnostics.
At midday, shares in Dotz were trading 27.12% higher at $0.075