Australian Blockchain Firm Lists 'Security Matters' on Nasdaq in $518 Million Merger
Categories: Crypto News US
Australian Blockchain Firm Lists 'Security Matters' on Nasdaq in $518 Million Merger
Anti-counterfeit tech company Security Matters will delist from the Australian Securities Exchange and merge with a SPAC (special purpose acquisition company) on the Nasdaq in a deal that will increase its value more than 14-fold.
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 permanently marks solids, liquids and gases to enable identification. 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. Security Matters CEO Haggai Allon said the business was undervalued by local investors, who still favored natural resource-based companies.
“The Nasdaq, perhaps the most liquid market in the world, has an emphasis on technology and other high-growth sectors like ours,” Elon told the Australian Financial Review. In February this year, ASX chief executive Dominic Stevens predicted that more crypto companies would list on the Australian stock market. The safety cases appear to be at least one outdoor swimming against the tide.