Security Matters signs agreement with Trifecta Industries to commercialise diamond trace technology
Security Matters and Trifecta will jointly establish and own the new company. Once complete, Trifecta will commercialise and scale the technology.
Australian supply chain integrity and blockchain company Security Matters (ASX: SMX) aims to commercialise its trace technology for diamonds through an agreement signed this week with Canada’s Trifecta Industries Inc.
Trifecta specialises in the development and commercialisation of new technologies in the diamond industry and through its various affiliates, has produced some of the world’s finest cut and polished loose diamonds.
Security Matters’ technology is believed to have considerable potential to increase traceability and transparency throughout the diamond supply chain.
It offers protection against fraud and theft, and claims to provide a clear traceable path for each diamond from mine to consumer.
Under the terms of the agreement, Trifecta will invest $708,000 in four tranches over a 10-month period to commercialise and scale a patented technology developed by Security Matters for the diamond industry.
The agreement will be executed through a joint venture company shared 50:50 between Security Matters and Trifecta.
Trifecta will use the company as a vehicle to commercialise and scale Security Matters’ technology through its existing diamond industry network.
The companies are aiming to make a commercial solution available to preferred strategic customers by mid-2020.
Security Matters founder and chief executive officer Haggai Alon said the partnership with Trifecta would be a valuable step in the development of trace technology.
“This agreement is [the] next step towards commercialising our identification technology for diamonds from mines all the way to the end consumer,” he said.
“We have enjoyed a strong relationship with Trifecta over more than two years, and we are excited [the company] recognises the huge potential of our technology.”
Quarterly progress
The agreement with Trifecta is the latest in a string of good news stories for Security Matters.
This week, the company announced it had delivered strong progress during the March quarter and developed a number of “commercially-meaningful relationships” with several international organisations.
The company said it remained committed to leveraging those relationships to secure further collaboration agreements and proof-of-concept projects in order to deliver on its business model and commercialise its technology.
Also during the quarter, Security Matters completed an oversubscribed placement raising $6.2 million before costs – double the minimum subscription – at $0.50 per share to institutional and sophisticated investors.
The placement was completed at more than double the IPO price, demonstrating strong growth and support from the market and enabling the company to roll out its commercialisation strategy with large international companies.
At mid-afternoon, shares in Security Matters were up 35.14% to $0.50.