Why the Security Matters share price rocketed 17% higher today

The Security Matters Ltd (ASX:SMX) share price is rocketing higher on Tuesday after announcing a joint venture with a former Macquarie Group Ltd (ASX:MQG) banker…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

One of the best performers on the Australian share market on Tuesday has been the Security Matters Ltd (ASX: SMX) share price.

In morning trade the technology company's shares have jumped 17% higher to 41 cents.

What is Security Matters?

Security Matters is a technology company that owns and is commercialising the technology to permanently mark any object either solid, liquid, or gas with a hidden chemical-based barcode.

This barcode can be read using the company's unique reader to access the corresponding stored data and is recorded and protected using blockchain technology.

Why is its share price jumping higher today?

This morning Security Matters announced the incorporation of a new joint venture company, Security Matters Beverages in collaboration with Global Bevco.

Global Bevco is a company owned by former Macquarie Group Ltd (ASX: MQG) banker Peter Yates AM and Leon Kempler AM.

The joint venture will aim to complete the development of its patented wine anti-counterfeit and adulteration system and commercialise its application. The two companies will have a 50% stake in Security Matters Beverages.

The newly formed partnership will apply Security Matters' solution to alcoholic beverages globally, with work already underway with key stakeholders to develop global standards and test the technology.

Security Matters founder and CEO, Haggai Alon, said: "We are focused on assisting FMCG companies to demonstrate brand integrity and production visibility – from raw material to recycling – with all information stored on the block chain. Through the joint venture we will be executing an aggressive strategy in 2020, targeting the FMCG market and specifically the alcohol industry which accounts for over $500 billion annually of counterfeit goods."

"Following the successful demonstration of our pioneering technology incorporated in different types of wine, we are finalising the markers to embed into wines within Australia and Europe while solving the regulatory issues surrounding wine provenance, quality and production methods," he added.

This could be helpful for global wine giant Treasury Wine Estates Ltd (ASX: TWE) which has had issues with copycats and counterfeits in the past.

Peter Yates, Director of Global Bevco, notes: "The sale of counterfeit wine is a significant threat to the industry that occurs at all price points and is particularly prevalent in China."

"Moreover, it is a social problem that deprives communities of the value they have created, especially growers of premium product. SMX's technology, pioneered in Israel, is a unique commercial solution to this social problem and represents the holy grail for preventing counterfeiting of wine," he concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »