Veritec Inc. in Chatsworth said it has acquired an anti-counterfeiting identification system from Optical Scanners Ltd.
The purchase price included $25,000 cash, 50,000 shares of Veritec Series B convertible preferred shares priced at $1 a share and warrants to purchase 150,000 shares of Veritec common stock at $1 a share. Optical Scanners will also receive a royalty of 5%, up to $150,000.
The identification system that Veritec acquired puts small amounts of non-radioactive, traceable elements in items after they are manufactured. The authenticity of the products can then be verified using an electro-optical scanner.
Veritec previously had the license rights to the covert product. It now plans to market the identification system to industries vulnerable to counterfeiting and product diversion.
Veritec's main product is a machine-readable matrix code that is being marketed as an alternative to the bar codes printed on consumer goods that allow retailers to ring up sales electronically.
