Dotz Nano Limited has entered into a co-development, supply and licensing collaboration agreement with Theracell Labs Ltd. Under the agreement, Dotz's end-to-end authentication technology will be used to mark disposable bioprocessing consumables, using on and in-product tagging techniques. Dotz's non-toxic taggants will be embedded directly in these products during manufacturing without impacting the appearance or properties of the products. As part of the licensing arrangements in the agreement, Dotz and Theracell Labs will collaborate on the joint development of technology solutions to create an identification standard to tag patient-derived cells, facilitating real-time authentication of the patient's cells.

Subject to the performance of the collaboration (including satisfaction of any agreed KPIs), the parties intend that the joint development will extend to include the ability to trace therapeutic cells in-vitro to determine treatment efficacy. Under the agreement, Theracell Labs has committed to minimum purchase orders of USD 5 million in the first 12 months for the supply of Dotz-tagged disposable bioprocessing consumables, subject to agreed project and service deliverables. The agreed project deliverable is currently the supply of Dotz-tagged disposable bioprocessing consumables, however as the project progresses additional project deliverables are expected to be agreed between the parties.

With Dotz's extensive expertise in tagging a variety of consumables, the Company does not envisage encountering any difficulties tagging these products. If the collaboration agreement results in the successful development of a commercialized product for the gene and cell-based therapy sector and all necessary regulatory approvals are obtained in respect of the product (including in relation to the manufacturing, marketing, distribution, import, export and/or sale of the product): Theracell Labs will be granted an exclusive, perpetual, global licence to manufacture, market, distribute and sell the results of the collaboration for the gene and cell-based therapy sector; and Theracell Labs will be required to pay Dotz 5% of net revenue from the sale of the product.