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Motif Micro progresses to commercial production implementation


Published 18-NOV-2019 11:38 A.M.


3 minute read

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Product authentication and consumer engagement solutions provider YPB Group Limited (ASX:YPB) has achieved successful commercial production implementation of its Motif Micro smartphone readable authentication solution at the PanPass’ flexo printing line in China.

This is a critical milestone as it confirms the path to revenue generation for this novel technology.

YPB recently announced the signing of PanPass Inc. as the maiden client for its ground breaking technology, Motif Micro, believed to be the world’s first smartphone readable forensic authentication solution.

PanPass is reputedly China’s largest security label supplier with annual volumes of 15 billion labels.

Motif Micro succeeds under ‘real world’ conditions

The trial with PanPass was a high volume commercial production run where the YPB’s Motif Micro 1 forensic physical marker was successfully incorporated into thousands of flexo ink labels, effectively under standard 'real world' conditions for a high volume production line.

The incorporation of the Motif Micro 1 particles into ink meant no change to the production equipment or line, the resultant labels were not distorted by the presence of Motif Micro and the accuracy of the smartphone scan of the labels to detect the presence of Motif Micro 1 was excellent.

This successful PanPass trial is a highly value-enhancing milestone for YPB as it proves the scalability, simplicity, effectiveness and accuracy of Motif Micro under commercial production conditions.

This successful PanPass trial is a highly value-enhancing milestone for YPB.
This successful PanPass trial is a highly value-enhancing milestone for YPB.

This trial is believed to be an historic world first – the printing of a high security smartphone readable authentication technology on a commercial printing line.

It demonstrates Motif Micro 1 can be quickly and seamlessly incorporated into existing production processes with no disruption and with negligible incremental cost.

This follows the successful certification of Motif Micro 1 as food safe to FDA and China standards by SGS, the world’s leading certification company.

Receiving that certification not only ensured an open door to the vast food packaging industry, but it also facilitated access to the large and rapidly growing wellness, health and beauty sector whose products are ingested or applied to the skin.

Further trials in progress

Discussing the significance of commercial production implementation while also pointing to the release of further positive news, YPB chief executive John Houston said, “This trial is a highly value-creating milestone for YPB.

‘’Printing labels containing Motif Micro 1 in high volume on a standard print line to produce a highly secure authentication technology for mass consumer goods categorically confirms the commerciality of our solution.

‘’Smartphone readability of a forensic authentication mark is so valuable as it allows viral dissemination of a top-of-the-line anti-counterfeit solution due to the ubiquity of the enabling technology, namely, the smartphone.

‘’The appeal to consumer brands is that confirmation of product authenticity is a powerful trigger to engagement and our Connect solution allows the confirmation scan to open a direct channel between the brand and the consumer.

More than 100 codes have been issued by YPB.
More than 100 codes have been issued by YPB.

‘’Brands are able to protect their consumers and brand value from counterfeit, but also have a new direct channel for engagement with a known consumer.

‘’The PanPass trial clearly demonstrates the ease of commercial implementation of Motif Micro 1, and is a major advance toward driving our revenues.

‘’Further Motif Micro 1 trials are in process and we look forward to report on these as more substrates are trialed.”

Consequently, while YPB’s shares are up 50% since the start of September, a combination of today’s news and developments that arise from upcoming trials have the potential to provide further share price momentum.

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S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

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