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Security Matters (ASX:SMX) has raised $6 million at twice the minimum subscription and two-and-a-half times the company’s IPO price — all while bagging a new partner.

The placement of 12 million shares at 50c each was well-supported by existing shareholders, with “offers scaled back” — but one of the main highlights is on bringing new shareholders to the register.

While the company said “significant funds” were raised from international investors — expanding the geographic footprint of the register, news of Meptagon coming on board as a strategic investor is the headline.

It took a cornerstone $US500,000 ($A703,400) of the placement, and will now work with Security Matters as a subcontractor.

Meptagon will provide engineering and construction expertise to SMX clients in the electronics and large industrial infrastructure sectors, particularly in the production and manufacturing environment.

News of the oversubscribed placement comes after a string of recent wins such as:

In addition, TMT analytics recently issued a report placing a $1.13 price target on the company — which would make the 50c raise a bargain for institutional investors who managed to get in.

Security Matters CEO Haggai Alon hailed the oversubscribed placement, saying it was a vote of confidence in the company.

“Australia has proven that it is not only a house, but a home for Security Matters’ technology. We deeply appreciate the confidence of our investors in our ability to scale our technology worldwide,” he said.

“With this additional funding, we take another step towards fulfilling our vision of creating a digital twin to any physical object and becoming the global record of physical goods.”

About Security Matters

Security Matters is bringing a unique ‘track-and-trace’ solution to the market which could provide not only the ability to mark objects and trace them, but verify authenticity using a blockchain-backed solution.

It has the ability to use a hidden chemical ‘barcode’ which can permanently mark objects without altering their physical state.

The barcode is read using the company’s unique ‘reader’ to access the corresponding stored data, recorded and protected using blockchain technology.

The company has been on a roll since the start of the year, signing agreements to provide the technology in several verticals.

In February it revealed that it had become the only company in the world proven to be able to provide a ‘track and trace’ solution for the electronics manufacturing industry.

READ: SMX hails ‘moon landing’ moment

But it’s also been active in targeting various other verticals.

For example, it’s targeted the burgeoning medical cannabis market with a trial with UK-based Clinicann to create a global standard for medical cannabis verification.

It has also dipped its toe in the agriculture industry through a trial with seeds giant Hazera.

This content is produced by Star Investing in commercial partnership with Security Matters.  This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.