Tech company Security Matters (ASX:SMX) has signed an agreement to provide supply chain integrity in the medical cannabis market, one which is estimated to reach $US$146.4 billion by 2025.
The ASX-listed company has secured an exclusive development and supply agreement with CliniCann, which distributes medical cannabis products in the UK, Australia, Asia-Pacific, and South America.
Security Matters will use its “track and trace” technology on the packaging of CliniCann products, verifying their authenticity and security.
It does this by permanently “marking” any object – whether solid, liquid, or gas – with a chemical-based barcode.
It also controls the tech for the reader of this barcode, which can be used to identify those codes. Security Matters is also developing a blockchain solution to record, store and protect ownership data associated with its track and trace system.
The implementation of the technology will give regulators certainty over CliniCann’s products as it seeks to list on the London Stock Exchange later this year.
Meanwhile Security Matters’ founder and CEO, Haggai Alon, said the deal gave Security Matters an entry point on the ground floor in an industry that is expected to be hit with a wave of regulation in the coming years.
“The signing of this agreement demonstrates how we plan on utilising our technology to create international industry quality standards globally, and working with CliniCann represents a fantastic opportunity for us to access the ever-growing medicinal cannabis sector globally,” Mr Alon said.
CliniCann chairman David Wheeler said Security Matters’ technology would provide its products legitimacy in the eyes of regulators.
“Security Matters will work with CliniCann to build track and trace solutions for the medical cannabis markets, giving the critical supply chain integrity that customers, prescribers and regulators will demand as these markets emerge and grow,” Mr Wheeler said.
Under the three-year deal, all direct costs will be covered by CliniCann, and services fees will be under a standard SaaS model.
There is also an option to extend the deal, should Security Matters hit key performance indicators.
This content is produced by Star Investing in commercial partnership with Security Matters. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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