Negotiations for a commercial contract have already commenced, with SMX to provide further updates in Q2.
After a steady run of positive news flow to start the year, a company focused on digitising physical objects on the blockchain to enable a circular and closed loop economy, Security Matters (ASX:SMX) had another key announcement this morning.
SMX advised that it has successfully completed proof-of-concept (POC) testing with a tier one global tyre and conveyer belt production company.
The POC was to establish the effectiveness of Security Matters’ proprietary supply chain solution, which can digitise physical objects on the blockchain to enable a circular and closed loop economy.
How it works
Having met its POC target, SMX will now progress to pilot testing in a live environment with its multinational client.
The tyre company will roll out a digitised solution to ensure the integrity of its entire supply chain for rubber components, from “tree to tyre”, Haggai Alon, CEO of Security Matter said.
SMX outlined a four-step process for implementation:
- Accurate identification of rubber from ethical plantation sources
- Digitally certify the grade and quality of the rubber
- Monitor and calculate the amount of natural rubber used in finished goods
- Enable the re-use/recycling of rubber tyres at the end of their useful life.
The company advised this morning that POC testing showed it successfully completed all four aspects of testing.
“These include the ability to detect low concentrations of natural rubber within the finished good as well as the ability to identify different grades of rubber within the tyre,” Alon said.
A key component of the SMX technology is that it allows for a vast range of input components – from solids to liquids – to be marked for certification and tracking without affecting the end product.
In that context, the company also confirmed that POC testing showed the marking systems used for its tier one global tyre manufacturer “did not affect the mechanical properties of the finished good”, he added.
Looking ahead, SMX continues to move towards live commercial rollouts of its technologies, as the company positions for the global shift to ESG solutions as part of standard business practices.
On that front, SMX recently completed a $5.1m share placement that was heavily oversubscribed by existing institutional investors, who see the potential of the company’s technology as a leading solution in the space.
With POC testing complete, Alon said SMX has “already begun the negotiating process” for a commercial contract with its major new client.
With commercial discussions underway, the company said it expects to provide further updates around the details of the deal before the end of the June 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.