ASX Media Release – 4th August 2020
Dotz Nano Limited (ASX:DTZ) an advanced technology company developing, manufacturing and commercialising marking, tracing and verification solutions has entered into a commercial agreement with V2Tech Distributors Pty Ltd, an Australian- based corporation specialising in wholesale distribution, to supply its anti-counterfeiting and tracing capabilities for face masks and other PPE equipment.
Under the agreement, V2Tech Distributors will pay A$528,000 to Dotz to supply 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.
V2Tech will pay Dotz 5 per cent of the contract value within 30 days of the Agreement date. The balance will be paid upon delivery by Dotz of the quantity of ValiDotz™ security markers and encrypted QR codes needed to authenticate the 30 million masks, expected in the last quarter of 2020.
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. These 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, will enable Australian medical facilities, retailers and end-customers to verify that they are using authentic face masks.”
Dotz Chairman Bernie Brookes said, “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. VTech’s Directors have over 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.”
See full ASX Media Release here.