Nanotech Security seeks C$4.2m for acquisitions

Canada's Nanotech Security Corp (NTS) has said it intends to increase its recent C$3.9m financing round to C$4.2m as it gears up for two key acquisitions.

The company - best known for its KolourOptiks anti-counterfeit technology inspired by the iridescent Blue Morpho butterfly - previously announced its intention to buy two privately-held companies based in British Columbia to gain outright ownership of its anti-counterfeiting and authentication technology portfolio.

"Once the financing proceeds are released from escrow, we will use them to accelerate development and commercialisation of our nanotechnology based optical imaging products," said the company's chief executive Doug Blakeway.

The acquisition will eliminate a 6 per cent gross revenue royalty on product sales and will also result in NTS acquiring direct ownership of the principal nanotechnology patents as well as ownership of additional intellectual property in related fields. It will still have to pay a 3 per cent royalty to Simon Fraser University, where the technology was originated.

The move will also provide NTS "with flexibility to develop applications for our nano-optic technology beyond security and anti-counterfeiting," said Blakeway.

The KolourOptiks technology can be directly applied to banknotes and other valuable documents and products and will produce light signatures are both overt (visible to the naked eye) and some that are covert (machine readable only).

NTS has now completed two commercial-scale production test runs which suggest that the technology can be integrated into standard security industry commercial scale manufacturing processes (see video below).

The company says it has also developed new processes that can support bolder, high intense colours - as well as subtle colours such as skin tones - using KolourOptiks.

Meanwhile, NTS' just-released fiscal third-quarter results statement indicates that revenues were a little over C$1.3m over the nine-month period ending June 30, 2013, while the company posted a net loss of around C$1.3m.

The company has also announced it has appointed Frenny Bawa as its chief commercial officer. She was formerly vice president and Managing Director for India for BlackBerry.