Security Matters, backed by 2XU’s Clyde Davenport and Harold Mitchell, launches review

Harold Mitchell is a top 20 shareholder in Security Matters.

Security Matters has tapped Florida’s ClearThink Capital to undertake a strategic review to look at options to maximise value for its shareholders, which include 2XU founder Clyde Davenport and ad man Harold Mitchell.

The blockchain technology company’s shares are trading at exactly half the 12-month high of 40c, with Security Matters telling the Australian Securities Exchange the review “will identify and assess opportunities to accelerate growth in the Company’s technological application and offering’’.

“The proposed strategic evaluation process will include a review of all feasible funding options combined with an assessment of potential markets that are supportive of new technologies; providing SMX the opportunity to grow and expand during its early-stage pre-revenue period.’’

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No time frame has been put around the review, and “there can be no assurance that the assessment of strategic alternatives will result in any transaction’’, the company said.

While the company has a modest market capitalisation of just less than $40m, it has a board with a depth of experience in defence and technology, and earlier this month appointed the former director general of the Israel national cyber directorate, Yigal Unna, to its advisory board. The company’s board also includes a number of Israeli tech and defence experts and NextDC non-executive director Dr Gregory Clark.

The company’s share register - as at March last year when the latest annual report was released - also included some familiar names in Harold Mitchell, with 1.6 per cent, 2XU co-founder Clyde Davenport’s family investment vehicle with 1.9 per cent and Peter Sarich’s Cape Bouvard Investments with 2.4 per cent.

Mosman fund manager James Simpson and wife Jane Baumann hold 1.9 per cent while Eddie and Helen Kutner own 1.5 per cent.

The top 20 holders owned just shy of 70 per cent of the company as at March last year however the company has conducted two capital raisings during the year bringing in $US6.4m.

The company posted a full year loss of $US4.9m for the year ended December 31, down from a $US6m loss in 2020, and had $US4.2m in cash on hand at the end of the year.

Its technology involves providing traceable digital provenance on the blockchain across numerous products including tyres, fashion and gold, in partnership with The Perth Mint.