As revenues rise, VerifyMe buys back shares

Anti-counterfeit firm VerifyMe has said it plans to buy back $1.5m-worth of its shares, as it predicts an increase in revenues over the next 12 months.

The company – which had $9m in cash on hand at the end of September according to its third-quarter results statement – says the move will increase stockholder value, but will leave “sufficient cash resources to fund our operations.”

Rochester, New York-based VerifyMe – which specialises in brand protection features for anti-counterfeit, authentication, serialization, and track and trace for labels, packaging and products – made an operating loss of $983,000 in the three-month period, down 48 per cent.

It reported revenues of almost $101,000 in the third quarter, up 79 per cent on the prior year and a third up on second-quarter sales.

The company’s CEO Patrick Whyte said the increase was driven by an expansion of a contract with “a Forbes Top 50 Private Company that sells nutrition, personal care, beauty and home care products around the globe.”

The unnamed customer is using VerifyMe’s covert luminescent pigment RainbowSecure – first launched in 2018 – which combines an invisible ink with a proprietary laser-based VerifyMe Beeper device to enable counterfeit products to be detected in the field.

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The customer first signed up to the programme in 2019, and is now using the marking system on more products in three additional countries to protect from counterfeits. White also says the company is also targeting the apparel, cannabis, beverage and pharma industries, and reckons its sales pipeline of 50+ projects could be worth more than $12m.

In 2017, the company signed a five-year contract with HP Indigo to print this technology on packages and labels on their 6000 series presses.

It has also started working with an undisclosed “multibillion distributor” that is sourcing the development of an inkjet version of the taggant and could expand its coverage “to about 95 per cent of the label and packaging industry not currently served now.”

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