Listed technology firm QRSciences has secured a deal with the Chinese Institute of Atomic Energy (CIAE) to develop a security screening system for the 2008 Beijing Olympics.
Listed technology firm QRSciences has secured a deal with the Chinese Institute of Atomic Energy (CIAE) to develop a security screening system for the 2008 Beijing Olympics.
The deal is the latest in a string of significant developments for the Cannington-based company and follows the signing of a memorandum of understanding (MOU) with the CIAE earlier this year.
Under the terms of the deal, QRSciences will develop a new security screening system based on the company’s existing technology for use at the Olympics in the detection of radioactive and explosive materials along with weapons, narcotics and other contraband.
Following successful testing of the new system, the agreement also provides for the negotiation of a joint venture or other formal commercialisation arrangements within China.
QRSciences Limited chief executive officer Kevin Russeth said the company hoped the agreement would lead to other deals.
“This formal agreement consolidates our relationship with the CIAE and provides a contractual framework for a cooperative effort that will hopefully lead to the deployment of advanced screening systems for the protection of major sporting events, aviation, rail and other critical infrastructure in the People’s Republic of China and beyond,” he said.
This month, QRSciences was recognised as one of the most promising technology companies in the Australia/New Zealand region when it won the prestigious Guy Manson Award at the recent ANZA Technology Network Conference in Silicon Valley.
QRSciences is also the subject of a takeover bid by its parent company, QR Sciences Holdings Limited this month.
“The close relationship between the two companies, with QRS dependent on Holdings for financial support and management, suggests that the consolidation of the two companies would be a better outcome for shareholders,” Mr Russseth said.
QRSciences has gradually been building its reputation as a developer of Quadrupole Resonance (QR) technology.
The technology passes radio waves through an object, such as a suitcase, and returns unique signatures if explosives or other targeted materials are present.
QRSciences uses proprietary software and hardware to identify the chemical structure or unique fingerprint of specific molecules.
The company initially developed its technology to target the mining sector, for example to detect the presence of a particular mineral.
The technology could also have applications in the pharmaceutical industry.
QRSciences has become a stock to watch in the speculative technology market in recent times after positioning itself in the security sector.
Coinciding with some significant announcements, the company’s share price has risen nearly 80 per cent in the past few months.
QRS shares have risen from around 14 cents in mid-July and, following a high of 31 cents in September, are currently trading at around 25 cents a share.
In August, QRSciences announced the availability of its first commercial product – a Quadrupole Resonance Machine used to detect plastic explosives hidden in passenger luggage.
In addition, the company agreed to sell two QR devices to US airport security system giant Rapsican Security Products, to be integrated with Rapsican’s security x-ray machines.
In early October, QRSciences raised $5 million through an oversubscribed share placement, with the capital raised to be used to fund ongoing development and commercialisation.
Shares were placed at 27 cents a share and a one-for-two free attaching 40-cent option, which expires on January 12 2005.
