Australian Blockchain Firm Lists 'Security Matters' on Nasdaq in $518 Million Merger
Australian Blockchain
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Australian Blockchain Firm Lists 'Security Matters' on Nasdaq in $518 Million Merger
Anti-counterfeiting tech company Security Matters will be delisted from the Australian Securities Exchange and merged on the Nasdaq in a deal with a SPAC (Special Purpose Acquisition Company) that would increase its value by more than 14 times. The soon-to-merge Security Matters and Nasdaq-listed Lionheart III, a new company known as SMX, will be registered in Ireland. Together, the two companies command a pro forma equity value of US$360 million (A$518 million).
As part of the deal, Security Cases was valued at US$200 million on a pre-revenue basis – a massive increase over its A$18.3 million (US$12.7m) market capitalization on ASX. Specialist in Digital Markers Originally a blockchain startup focusing on recycling and traceability for the circular economy, Security Matters has developed a molecular marker that can be used to permanently identify solids, liquids and gases.
That marker then allows a digital twin to be stored on the blockchain, which can be used to authenticate products or provide traceability. The company has also developed conveyor belt technology to read digital markers for sorting and recycling facilities. Its previous joint ventures include helping Western Australia's Perth Mint track gold and ensure the supply chain is ESG-compliant.
SMX Security Matters CEO Haggai Allon said the Nasdaq Places Higher Value on the business was undervalued by local investors, who still favored natural resource-based companies. “The Nasdaq, perhaps the most liquid market in the world, emphasizes technology and other high-growth sectors like ours. In February this year, ASX chief executive Dominic Stevens predicted that more crypto companies would list on the Australian stock exchange.The safety cases appear to be at least one outdoor swimming against the tide”.
The Company's digital markers are used to authenticate products and track their supply chain, from mining and oil fields to recycling facilities. It also helps ensure companies are ESG-compliant when it comes to making products, services and materials.