Prototypes of new sensing devices manufactured by Sumitomo Precision Products will be displayed at the Japan Inspection Instruments Manufacturers’ Show (JIMA) scheduled for October 10, 2012. These prototypes were built on Visualant’s (OTC: VSUL) proprietary Spectral Pattern Matching (SPM) technology, thus leading to a pre-run on its stock price.
The Washington-based company develops light-based security and quality control solutions for use in security, anti-counterfeiting, forgery/fraud prevention, brand protection, process control applications and diagnostics. Visualant’s patent pending optical sensing and data capture technology is known as Spectral Pattern Matching (SPM) and is integrated into various stand-alone devices to precisely identify and authenticate any item or substance. On May 31, 2012, the company entered into a license, joint research, product development and stock purchase agreement with Sumitomo Precision Products. Under the agreement, Sumitomo will invest $2.25 million into Visualant in exchange for just over 17.3 million shares of restricted common stock priced at $0.13 per share. Additionally, the joint development agreement will focus on the commercialization of the SPM technology. Sumitomo also received a license of the SPM technology in identified Asian territories. In this regard, Sumitomo will also pay Visualant an initial payment of $1 million for the license agreement followed by a negotiable running royalty for the license at the completion of the joint development agreement.
On August 22, 2012, Visualant, in an effort to consolidate all its intellectual property, entered into an agreement with Seattle-based intellectual property and business development organization, Javelin, to acquire the license for SPM in the environmental field of use. Additionally, Visualant entered into a business development agreement with Javelin to explore applications for SPM in all fields of use.
On September 7, 2012, TransTech Systems, a subsidiary of Visualant, signed a major distribution agreement with the Convergence Systems Limited. Under this agreement, TransTech, an established leader in the ID badging and access control field, will distribute RFID readers from Convergence Systems for its ultra-high frequency or UHF tracking projects in North America.
TransTech Systems also exhibited at the ASIS International trade show in Philadelphia on September 10-13, 2012. On September 12, 2012, Visualant stated that it will unveil prototypes of Sumitomo’s latest sensing devices at the JIMA show in October.
The stock price, which remained in a range of $0.10 to $0.14 for over six months, had a breakout above the price of $0.14 on September 24, 2012. With the JIMA show just around the corner, the stock continues to make impressive gains.
Visualant ended the day at $0.20 per share, up $0.01 or 6.7% on a volume of 662,723 shares.
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