- Authentication technology company Dotz Nano (DTZ) has entered a three-year purchase agreement with Breathe Medical Manufacturing
- Breathe Medical is a Canada-based manufacturer of surgical face masks and personal protective equipment
- Under the agreement, Dotz will supply its ‘Secured by Dotz’ authentication solution to Breathe, which will implement the solution in the face masks it distributes across the U.S. and Canada
- An initial purchase order of US$1 million (roughly A$1.3 million) is scheduled to be delivered in the first quarter of 2021
- The agreement involves a minimum purchase order of US$1.25 million (roughly A$1.7 million) for Q2 2021 and for each of the following 10 quarters
- However, in order for Breathe to maintain exclusivity, it will need to satisfy a minimum quarterly purchase order of US$2.5 million (roughly A$3.4 million)
- Company shares are up a healthy 25 per cent and trading for 25 cents
Authentication technology company Dotz Nano (DTZ) has entered a three-year purchase agreement with Breathe Medical Manufacturing.
Breathe Medical is a new Canadian manufacturer of high-quality surgical face masks and personal protective equipment (PPE).
Under the agreement, Dotz will supply its ‘Secured by Dotz’ authentication solution to Breathe Medical for face masks in the U.S. and Canadian markets. The agreement will also enable Dotz to implement its authentication solution at Breathe Medical’s manufacturing facilities.
“We are proud and delighted to be partnering with Breathe Medical. High-quality surgical face masks are essential to preventing the spread of COVID-19. Our agreement will ensure that frontline and other essential workers in Canada and the USA will be able to authenticate the quality of their masks on-site and in real-time, as well as the general public,” Dotz CEO Uzi Breier said.
An initial purchase order of US$1 million (roughly A$1.3 million) is already scheduled for delivery in the first quarter of 2021.
The agreement also involves a minimum purchase order of US$1.25 million (roughly A$1.7 million) for the second quarter of 2021 and for each of the following 10 quarters.
However, in order for Breathe Medical to maintain exclusivity, it will need to satisfy a minimum quarterly purchase order of US$2.5 million (roughly A$3.4 million).
In total, the parties estimate the agreement’s value is between US$13 million (roughly A$17.8 million) and US$24.6 million (roughly A$33.8 million).
Importantly, the ‘Secured by Dotz’ authentication solution provides Breathe Medical with verification and differentiates its ‘Made in Canada’ face masks.
“Country of origin manufacturing is increasingly important, and our agreement with Dotz provides further quality assurance to our North American consumers that they are purchasing high-quality and locally-made Breathe Medical surgical masks,” Breathe Medical Chief Financial Officer Robert Balazs said.
As Dotz is noting increased interest for its solutions, it has upscaled its production capacity to meet the demand.
Company shares are up a healthy 25 per cent and trading for 25 cents at 10:36 am AEST.