Why SMX (Security Matters) Shares Are Skyrocketing Today

SMX (Security Matters) PLC SMX recently bolstered its stake in True Gold Consortium Pty Ltd.

The agreement, inked on October 3, 2023, sees SMX acquiring an additional 7.5% equity in TrueGold, elevating its total shareholding to 51.9%. This acquisition not only underscores SMX’s commitment to fostering innovative solutions in the gold sector but also amplifies its influence in TrueGold’s R&D and revenue commercialization ventures.

The acquisition of an extra 7.5% stake in TrueGold involves a waiver of A$475,000 (around $307,000) in outstanding payables by TrueGold to SMX as of June 30, 2023, and grants TrueGold access to additional intellectual property from SMX.

The initial valuation of TrueGold, based on an October 2021 assessment, placed its worth between $78.5 million and $90 million, averaging at $84.3 million. A new appraisal is scheduled by October 31, 2023, to update this valuation. TrueGold will have the option to repurchase additional shares from SMX based on this updated value.

CEO, H. Alon commented: "The agreement fortifies a gold industry alliance, which we expect will ensure a cohesive approach towards achieving shared strategic objectives, particularly the development and commercialization of the True Gold platform. This acquisition exemplifies a mutual endeavor to pool resources, management acumen, and R&D capabilities, fostering innovative solutions that address industry challenges."

Price Action: SMX shares are trading higher by 94.7% at $3.30 on the last check Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.