Source Certain International launches shares on the Australian stock exchange

Source Certain analyses and can determine and certify the origin of, among other things, seafood, meat, eggs, wine, organic produce, forestry, gold, diamonds and critical strategic minerals.

Its main income comes from more traditional analysis of such products, but it sees potential in the growing demand for greater transparency in global supply chains.

It is hoping to raise a modest $5 million to $7 million, mainly to expand this side of its business, offering shares at 20 cents each.

The offer, which closes on September 22, is only open to institutional investors and to clients of the stockbrokers who have been allocated shares to sell.

Trading in the shares is expected to start on October 19.

The company was formed in 2016 but it is still burning cash and making a loss. Operating revenue was just over $2.2 million in the year ending June 2022.

It had only two clients for its tracing service in the year to June 2020 but 20 in the 12 months to June this year.

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It is, the prospectus notes, a "highly speculative" investment at this stage.

Like all technology companies, it faces the risk that someone, somewhere might come up with a better or cheaper way of doing things.

There is little doubt, however, that consumers are increasingly keen to know that what they are buying is what it says on the label.

According to the Source Certain prospectus, "a recent survey found that 58 per cent of global consumers have indicated that they will be more attentive to the origin, or provenance, claims as a result of the COVID-19 pandemic".

The Punter considered contacting one of the brokers handling the offer but will wait until the shares start trading on the ASX next month.