- Authentication technology company Dotz Nano (DTZ) has entered a commercial agreement with V2Tech Distributors, worth $528,000
- Under the agreement, Dotz will provide its ValiDotz security markers and stickers for authenticating face masks and other PPE
- Dotz will pay V2Tech 1.5 million unquoted options if annual sales targets for the masks are met
- In exchange, V2Tech will pay the company five per cent of the contract within 30 days of the agreement
- Dotz Nano’s share price is steady today, with. stock trading for 19 cents
Authentication technology company Dotz Nano (DTZ) has entered a commercial agreement with V2Tech Distributors, worth $528,000.
The agreement is for the supply of the company’s anti-counterfeiting and tracing capabilities. Under the contract, V2Tech will pay Dotz $528,000 for the provision of its ValiDotz security markers and stickers.
The markers and stickers are non-toxic, geo-specified, tamper-proof, and come with encrypted QR codes. They will be used to authenticate a range of personal protective equipment, including face masks, for health, government, and retail sectors.
This agreement will provide a simple, cost-effective system that marks, identifies, verifies, and traces quality face masks from reliable manufacturers. This is a growing concern, as safe and authentic face masks are a vital tool in fighting the ongoing COVID-19 pandemic.
Within 30 days of the agreement date, V2Tech will pay Dotz five per cent of the contract’s value. This equates to an initial payment of approximately $26,400.
The remaining balance will be paid after Dotz delivers enough ValiDotz markers for the initial order of 30 million face masks. This delivery is likely to take place sometime in 2020’s fourth quarter.
For two years, V2Tech will be the sole distributor of Dotz’s authentication solution for face masks and other personal protective equipment. However, the renewal of this agreement is dependent on annual sales targets for the masks being met.
Dotz will grant V2Tech 1.5 million unquoted options, as an incentive for meeting the performance targets. The options will have an exercise price of 23 cents each, vesting on a pro-rata quarterly basis over the two-year period, and expiring three years from the agreement data.
Dotz Nano’s CEO, Uzi Breier, commented on the company’s agreement with V2Tech Distributors.
“This commercial agreement is another example of the broad market opportunity available for our industry-leading and end-to-end anti-counterfeiting technology,” Uzi stated.
“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, enabling Australian medical facilities, retailers, and end-customers to verify that they are using authentic face masks,” he said.
After the announcement of this news on August 4, the company’s share price rose 22.58 per cent. However, Dotz Nano’s share price is steady today, with. stock trading for 19 cents at 1:32 pm AEST.