Dotz Nano Limited (ASX:DTZ) (“Dotz” or “The Company”) an advanced technology company developing, manufacturing and commercialising marking, tracing and verification solutions has signed its third PPE authentication agreement in three months by entering into a three-year commercial agreement with TT Medical Group (“TT Medical”), a specialist manufacturer and distributor of medical protection equipment.
Under the agreement, Dotz will supply its anti-counterfeiting and tracing capabilities for face masks and other PPE equipment in eight countries in the European and African markets (“Agreement”). Countries covered by the agreement are Turkey, Italy, Cyprus, Ghana, UAE, Qatar, Saudi Arabia and Egypt.
TT Medical will pay an initial A$348,000 (US$250,000) for the first tranche order of the “Secured by Dotz” marking units, used for authentication of face masks in the health sector, government, wholesalers and retailers in eight countries. This initial order will be delivered in Q4 2020. “Secured by Dotz” authentication solution includes ValiDotz™ security taggants coupled with Inspec™ readers and smart trackable QR codes.
Under the three-tranche agreement, TT Medical has placed a A$626,000 (US$450,000) follow-up order, which is expected to be delivered in Q1 2021. Timing for delivery of the third tranche of security taggants, QR codes and readers will be determined according to customer demand. TT Medical will pay Dotz an initial down-payment of 5% on the first and second tranche contract values within 30 days. Additional payments will be made against purchase orders. As part of the commercial agreement, TT Medical Group will become the sole distributor of the “Secured by Dotz” authentication solution for face masks in Turkey, Italy, Cyprus and Ghana PPE markets for three years, provided agreed annual sales targets are met.
Dotz has also signed a three-year distribution agreement with, TT Medical UAE, whereby the UAE entity will become the sole distributor of the “Secured by Dotz” authentication solution for face masks in the UAE, Egypt, Qatar and Saudi Arabia PPE markets, provided agreed annual sales targets are met. TT Medical UAE will be responsible for developing the Middle Eastern PPE market for Dotz, driving new business for the company in the region.
As an incentive for the Middle East distribution agreement, Dotz will grant TT Medical UAE four million unquoted options with an exercise price at a 40% premium to the closing Dotz share price on 25 August 2020, vesting on a pro-rata quarterly basis over the three-year period, provided performance targets are met, with an expiry term of three and a quarter years from the date of the Agreement (“Options”). The issue of Options is subject to shareholder approval.
Dotz CEO Uzi Breier said: “This third international agreement in three months means that health workers in over 11 countries now have access to the extra security and peace-of-mind that authenticated face masks provide as they carry out their essential work.”
“Dotz’s anti-counterfeiting technology combines the physical and digital domains to provide TT Medical with a safe, easy to implement, cost-effective, on-site detection system to mark, identify, verify and trace quality face masks across its entire supply chain – even across international borders.
“With the increasing prevalence of fake, low quality masks and PPE available in the market, Dotz’s authentication technology protects the reputation of PPE providers and assists in preventing the spread of COVID-19.
“Our industry-leading and end-to-end anti-counterfeiting technology will allow TT Medical to demonstrate to its customers and end-users that they are using authentic, high quality face masks able to perform at the high standards they were designed for.”
TT Medical Group CEO Tarhan Telli, said: “As a key supplier to the health and government sectors that serves 315 million people in eight countries, TT Medical is pleased to collaborate with Dotz following the unrivalled success and testing of our masks with 99.9% BFE results. We will continue to explore all opportunities to further develop our activities and investments with Dotz within our global partner network. We are particularly excited to further explore and test Dotz’s solution for verifying surface sanitation of public spaces. With the COVID-19 pandemic increasing the need for PPE equipment, we are very keen to ensure that we protect the reputation of our products and ourentire supply chain with strategic and reputable partners.”
TT Medical UAE CEO Khaled Al Khoori, said: “The COVID-19 pandemic has highlighted the genuine need for safe, functional face masks and other PPE globally. Quality is being compromised at present with unaudited supply chains and sub-standard counterfeit products risking the health and welfare of healthcare providers and other essential workers. Our partnership with Dotz will enable us to improve the transparency of our supply chain and verify our products on-site and in real-time. This partnership provides significant opportunities to further develop the market and lead the distribution of verified essential healthcare products to the region.”
About Dotz Nano Limited
Dotz Nano Limited (ASX: DTZ) is a technology leader in research, production and marketing of anticounterfeiting, authentication and tracing solutions. Dotz has strong, established distributors in North America, Europe, Japan, China and Australia as well as scientific collaborations and partnerships with leading academic institutes.
Its unique products ValiDotz™, BioDotz™, Fluorensic™ and InSpec™ are exceptional solutions for numerous applications, such as anti-counterfeiting, brand & reputation protection, oil & gas industry, liquids tagging, lubricants, polymers tagging and bio imaging. Recently the company has harnessed its technology to mark personal protective gear including face masks.
About TT Medical
TT Medical Group combined over 15 years of expertise in medical sector producing and distributing medical equipment and materials leading the domestic market with innovation and manufacturing standards dedicated to supply of the most needed protective equipment. TT Medical Group is a partner supplier to the Turkish Ministry of Health during the pandemic period and continues to expand supply and distribution in international territories with established JV partnerships in the United Kingdom, UAE, Cyprus and with further partnerships in the Middle East and Europe to follow. Investment into extending our core product lines into sanitizing systems.
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