ASX-listed authentication company Dotz Limited (ASX: DTZ) has signed a A$528,000 deal with V2Tech Distributors to mark 30 million Australian medical face masks with its anti-counterfeiting and tracing technology.
Under the agreement, Dotz will supply its ValiDotz security markers and geo-specified tamper-proof stickers with encrypted QR codes to authenticate an initial order of 30 million face masks for the Australian health sector, government and retailers.
Australian-based V2Tech will pay Dotz five percent of the contract value within 30 days of the agreement date. The balance is expected to be paid in Q4 2020, upon delivery by Dotz of the quantity of ValiDotz security markers and encrypted QR codes needed to authenticate the 30 million masks.
V2Tech will be the sole distributor for two years of Dotz’s unique end-to-end authentication solution for face masks in the Australian PPE market, provided the agreed annual sales target for masks is met. Agreement to be renewed automatically as long as these targets are met.
As an incentive, Dotz will grant V2Tech 1.5 million unquoted options with an exercise price of A$0.23 vesting on a pro-rata quarterly basis over the two-year period if performance targets are met, with an expiry term of three years from the date of the agreement. The issue of options will be subject to shareholder approval.
Dotz’s non-toxic anti-counterfeiting technology provides a safe, easy to implement, cost effective, on-site detection system to mark, identify, verify and trace quality face masks and other PPE from original and reliable manufacturers.
Dotz CEO Uzi Breier said, “This commercial agreement is another example of the broad market opportunity available for our industry-leading and end-to-end anti-counterfeiting technology. Our recent pivot shows how we can harness our technology and combine the physical and the digital domains to assist in preventing the spread of the pandemic through the detection of genuine PPE equipment, which will enable Australian medical facilities, retailers and end-customers to verify that they are using authentic face masks.”
Dotz Chairman Bernie Brookes added, “Dotz is continuing to execute the commercialisation strategy set by the Board of Directors, and I am especially excited to see its anti-counterfeiting technology being used to assist in reducing the spread of COVID-19 here in Australia.”
V2Tech is a newly incorporated entity, however, its Directors have more than 25 years’ experience implementing technology into retail, supply chain and consumer goods.
V2Tech’s Director of Business Development Abraham Althaus said, “V2Tech is pleased to have been selected as the strategic distribution partner for ValiDotz in Australia. This distribution agreement bolsters both organisations’ commitment toward building a more transparent supply chain that consumers can rely on for authentic and verified PPE equipment, which is of critical importance during this pandemic and beyond.”
