Collectors Universe Agrees to Acquire Gemprint Corporation for $7.5 Million Gemprint to Provide Anti-Fraud and anti-Counterfeiting Protection for GCAL
Diamond Grading Certificates
certificate will be a significant element in our brand
differentiation and we plan on marketing this service, along with other GCAL
services, throughout the diamond distribution channel."
The Gemprint patented technology is based on (i) the digital capture of
the unique refractive light pattern for each diamond (the diamond's
"fingerprint" or "gemprint") (ii) the database storage of such digital images,
and (iii) the inquiry, matching and verification of a requested diamond's
digital light refraction pattern to the registered database of diamonds. The
current technology has been in use by Gemprint for nine years and during the
12 months ended on October 31, 2005, Gemprint has added digital "fingerprint"
images for over 30,000 diamonds to its database of unique digital images of
the refractive light patterns of individual diamonds. The aggregate number of
diamonds registered in the Gemprint database is now in excess of 500,000
diamonds. Details on the Gemprint process can be seen at http://www.gemprint.com.
"We believe that our planned use of the Gemprint technology will represent
a significant advancement in the security of the diamond grading certificate,"
reported Don Palmieri, President of GCAL. "With the incorporation of Gemprint
into our grading process, we will be able to implement anti-fraud and
anti-counterfeiting measures that we believe will make the GCAL grading
certificate the most secure and trustworthy diamond grading certificate
anywhere. We believe that, because the Gemprint process is non-invasive and
the "fingerprint" it captures is inherent in the diamond itself, the Gemprint
identification method is far superior to laser engraving a diamond, since such
an engraving can be easily counterfeited by polishing off that engraving and
then re-engraving the diamond," added Mr. Palmieri.
Gemprint also manufactures a Gemprint ISi Verification System that
includes a diamond light refraction capture device and associated PC-based
software so that a diamond manufacturer, dealer or retailer will be able to
capture the unique "gemprint" of any GCAL certified diamond and, using the
software, will be able to submit the digital image for comparison to GCAL's
registered database. If there is a match, then the GCAL certificate number
will be returned to the user for verification of the GCAL certificate that
accompanied the diamond. The Gemprint ISi Verification System is slightly
larger than the size of a breadbox and is available for purchase at a nominal
price.
Clint Allen, Chairman of the Board of Collectors Universe added, "We
continue to make strategic investments in the diamond market to support and
strengthen our entry into this new market. The Gemprint acquisition is part
of our strategy in GCAL to provide a quality diamond grading brand, with
safety and security, that is supported by the anti-fraud and
anti-counterfeiting measures that will be provided by the combination of the
Gemprint identification system and GCAL's stringent grading process. The
board of directors is fully committed to deploying our cash resources for our
continued expansion into the diamond market."
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added services to
the high-value collectibles and diamond markets.
