Aussie Blockchain Firm ‘Security Matters’ Lists 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:

Blockchain recycling firm SMX sees valuation skyrocket 14 fold in SPAC listing . Blockchain startup Security Matters (SMC) is listing on Nasdaq through a SPAC merger. Its valuation has increased 14 fold overnight.

— Nathan (@shanzi73338680) July 26, 2022

The soon-to-be merged Security Matters and Nasdaq-listed Lionheart III, a new company to be known as SMX, will be registered in Ireland. Together, both companies command a pro forma equity value of US$360 million (A$518 million).

As part of the deal, Security Matters was valued at US$200 million on a pre-revenue basis – a huge increase on its A$18.3 million (US$12.7m) market capitalisation on the ASX.


Specialist in Digital Markers

Originally a blockchain startup focusing on traceability for recycling and 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 for authenticating products or providing traceability.

The company has also developed conveyor belt technology to read digital markers for sorting and recycling facilities. Its previous joint ventures include assisting Western Australia’s Perth Mint to track gold and ensure the supply chain is ESG-compliant.

Nasdaq Places Higher Value on SMX

Security Matters CEO Haggai Alon said the business had been undervalued by local investors, who still favoured natural resources-based companies. “The Nasdaq, perhaps the most liquid market in the world, emphasises technology and other high-growth sectors like ours,” Alon told the Australian Financial Review.

We are on the precipice of commercialising our technology across a number of large global markets – from gold to food and wine, to fashion, rubber and plastics – and the valuation reflects that.

Haggai Alon, CEO, Security Matters

In February this year, ASX chief executive Dominic Stevens predicted that more crypto companies would list on the Australian sharemarket. Security Matters would appear to be at least one outlier swimming against the tide.

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