VerifyMe, a technology solutions company that markets a portfolio of products that provide identifiers and serialization for authenticating, tracking and tracing functions for labels, packaging, products, people and financial transactions, has signed a licensing agreement with an undisclosed global label solution provider.
The corporate name of the secure label manufacturer has been withheld at its request for security reasons. Under the terms of the agreement, this label manufacturer will be able to create and print labeling containing the VerifyMe RainbowSecure™ ink technology.
As previously announced, VerifyMe has a partnership agreement with HP Indigo to manufacture Indigo Security ElectroInks containing the VerifyMe, RainbowSecure™ security ink. This ink technology is printed on HP Indigo digital printing presses. The RainbowSecure™ secure ink technology is an identifier that is used for serialization, counterfeit protection, authentication and track and trace functions. VerifyMe also offers a business intelligence software product called, "VeriPAS" that performs global product authentication, tracking and tracing that works in conjunction with the RainbowSecure™ technology. As defined by this agreement, VerifyMe will receive a contracted per label or package fee based upon volumes printed. VerifyMe expects revenues from this contract to begin in the next quarter and ramp forward.
For reference purposes, the global anti-counterfeit packaging market is estimated at $107.26 Billion in 2016 and is projected to reach $206.57 Billion by 2021, which computes a compound annual growth rate of 14.0%. The base year considered for the study is 2015 with the market size projected from 2016 to 2021 based on a report by marketsandmarkets.com.
Patrick White, president and chief executive officer of VerifyMe, commented, "We are very pleased that a global billion-dollar label solutions company has successfully tested and selected our covert RainbowSecure™ variable serialization identifier ink technology. This contract is a milestone for VerifyMe as we leave the development stage and enter the revenue growth stage of our company's evolution. With printing plants located around the world, this premier label solution provider has many clients with well-known brands in all major consumable product categories including healthcare. This agreement will enable our licensee to create and print labels for its brand owner clients with VerifyMe authentication capabilities utilizing their HP Indigo digital and traditional printing presses. The next step is to execute and support our licensee in their pursuit to implement the technology for their global customer base."