Tag Archives: Chad Wasilenkoff

Business in Vancouver discovers nanotechnology

There’ve been two articles in the Vancouver (Canada) newspaper, Business in Vancouver by Tyler Orton about a Simon Fraser University spin-off (start up) company, Nanotech Security. I first mentioned the not-yet-named company in a January 17, 2011 posting about proposed anti-counterfeiting measures based on the structures present on the Blue Morpho butterfly’s wings.

Orton’s Feb. 24, 2015 piece for Business in Vancouver provides an update on the company and on some of the business issues associated with a new technology and the strategy being used to introduce it,

Colour-shifting optical film has been the industry standard for banknote security since the 1990s. Depending on the angle of view, colours change on security features printed on bills in a way that the average person can recognize.

Because the nanotechnology has yet to be fully commercialized, the optical film side of the business is growing the most.

… increased demand for the optical film products prompted Nanotech to add a second shift at its Quebec cellulose facility, which was acquired – along with the legacy business – from North Vancouver’s Fortress Paper (TSX:FTP) in August.

Fortress Paper CEO Chad Wasilenkoff said when discussions began over the sale of Fortress Optical Features (FOF) he was immediately drawn to Nanotech’s butterfly technology.

“Getting a brand-new security feature that has not been used anywhere before … [banks] are just not willing to take a chance on new things in general when it comes to banknotes,” he told Business in Vancouver.

“It will take a little while to come to fruition, but we think putting these two entities [Nanotech and FOF] together will definitely fast-track that.”

Counterfeiting hit its most recent peak in 2004, when 470 fake notes per million were detected across the country, according to a 2011 Bank of Canada (BoC) study.

Wasilenkoff, whose company operates another banknote security firm in Switzerland, said he was happy with the return on investment after Fortress bought the BoC assets for  $750,000 and sold them to Nanotech three years later for $17.5 million.

“We were able to find a solution that was really synergistic for both companies,” he said, adding that Fortress will receive preferential treatment on new security features Nanotech develops.

LeRoux [Nanotech chief development officer Igi LeRoux] added that acquiring the legacy business was necessary if the nanotechnology was to be taken seriously in an industry that greets upstart companies with skepticism.

“[Now] We have an established network, we have an established market base, we have an existing product and – most importantly – we have an existing reputation in the industry.”

Orton’s Aug. 28, 2015 piece for Business in Vancouver builds on his Feb. work (Note: Links have been removed),

Banknotes implanted with nanotechnology, bills printed with pinhead-sized images at maximum resolution or even coins that can store of data.

… it’s not the kind of out-there concepts that only exists in the mind of the CEO of Nanotech Security [Doug Blakeway].

The Burnaby-based banknote security firm has been working non-stop to get these anti-counterfeiting measures onto the streets as quickly as possible and is preparing to ramp up production and sales of its technology after securing $2.6 million in its latest round of fundraising that closed Wednesday (August 26 [2015]).

Blakeway said the plan is to converge the nanotechnology and the optical film technology soon. It’s a measure he said is necessary to introduce the nanotechnology to issuing authorities that may be skeptical about the new product.

It probably won’t be until November before Nanotech discloses which countries are using its technology. Issuing authorities, Blakeway said, are reluctant to reveal exactly what measures they’re taking to fight counterfeiting.

“You can talk about the top 10 issuing authorities or the G8 issuing authorities,” he said.

But Nanotech isn’t stopping only at imprinting bills with the microscopic holes.

Mints began asking last year if it could transfer its technology onto coins in a stamping operation without any extra cost, save for the dye they use.

Moving forward, the coins will be able to store data through an image that’s carried through light waves.

I trust someone will notify the US government about this proposed nanotechnology-enabled coinage. There have been concerns about Canadian coinage in the past as noted in a May 7, 2007 article in thestar.com by Ted Bridis (Associated Press),

An odd-looking Canadian coin with a bright red flower was the culprit behind the U.S. Defence Department’s false espionage warning earlier this year, the Associated Press has learned.

The odd-looking – but harmless – “poppy coin” was so unfamiliar to suspicious U.S. Army contractors travelling in Canada that they filed confidential espionage accounts about them. The worried contractors described the coins as “anomalous” and “filled with something man-made that looked like nano-technology,” according to once-classified U.S. government reports and e-mails obtained by the AP.

The silver-coloured 25-cent piece features the red image of a poppy – Canada’s flower of remembrance – inlaid over a maple leaf. The unorthodox quarter is identical to the coins pictured and described as suspicious in the contractors’ accounts.

The supposed nano-technology actually was a conventional protective coating the Royal Canadian Mint applied to prevent the poppy’s red color from rubbing off. The mint produced nearly 30 million such quarters in 2004 commemorating Canada’s 117,000 war dead.

“It did not appear to be electronic (analog) in nature or have a power source,” wrote one U.S. contractor, who discovered the coin in the cup holder of a rental car. “Under high power microscope, it appeared to be complex consisting of several layers of clear, but different material, with a wire like mesh suspended on top.”

The confidential accounts led to a sensational warning from the Defence Security Service, an agency of the Defence Department, that mysterious coins with radio frequency transmitters were found planted on U.S. contractors with classified security clearances on at least three separate occasions between October 2005 and January 2006 as the contractors travelled through Canada.

It seems those army contractors were prescient about nanotechnology-enabled coins. As for the potential to use these coins for spying, I leave that speculation to those who know more about the technology.