Dotz Nano Limited (ASX:DTZ) has entered into a conditional agreement for a recurring order of Validotz™ polymer security markers to a leading East-European transportation and logistics company. The expected commercial order in its first year is anticipated to be about A$500,000.
The order has been enabled by a technological breakthrough created by Dotz for cost-effective tagging of highly pigmented polymer systems that allows for container contents to remain uncompromised. Dotz will insert the ValiDotz™ solution into hundreds of thousands of transportation containers throughout the customer’s transport network, which will allow for individual batch marking and tracking to address counterfeiting across international borders.
The order comprises two stages; a testing stage to be fully funded by the customer, and a commercial implementation stage that consists of annual orders. The testing stage, which is expected to occur between September and December 2019, will determine and validate the appropriate resin and compound solution formulation especially for the customer and the types of products it will be transporting. Dotz and the customer will then enter into the commercial stage starting January 2020, where annual volume commitments, expected cost and supply provisions will be confirmed and agreed annually. The first year’s order is expected to be about A$500,000 of ValiDotz™ product.
Inspec™ semi-forensic detection devices that allow for validation in the field may also be added to this annual total.
CEO of Dotz, Uzi Breier said, “This is a further example of Dotz’s market leadership in the brand protection and counterfeiting market with an industry-leading transport logistics company across Europe. Declining trust is a major reputational issue for manufacturers looking to sustain their positions in the market and protect their brands and products from cheap imitations. Our Validotz technology is a crucial element to supply chain logistics and highly valuable to protecting and proving brand integrity.
Dotz’s Validotz™ security markers utilise microscopic molecular, non-toxic, carbon-based security tagging materials can be directly embedded during the production process to impart a non-reversible, product-specific code, which can then be easily authenticated on-site and in real-time, to protect manufacturers from counterfeiting.
“Securing a significant order with a world-class transportation and logistics company is a testament to the quality of our Validotz solution. This contract allows Dotz to leverage ourselves into the manufacturing industry and sets a standard for future deals. We are delighted to be working with this customer and look forward to meeting their product security needs.”
A spokesperson for the customer company, who will remain confidential due to the international anti-counterfeiting nature of the deal. said, “We are excited to be partnering with Dotz to utilise their unique solution to counterfeiting. Our business is increasingly dependent on the ability to provide proof of security throughout the supply and logistics chain. Dotz helping us provide a guaranteed level of assurance to our clients so they can be confident that their customers are receiving their high-quality and authentic products.”