search icon
      blog search icon

      Here's Why SMX Stock Is Skyrocketing Today

      By Fahim Awan

      Published on

      October 10, 2023

      2:11 PM UTC

      Last Updated on

      October 12, 2023

      5:06 AM UTC

      Here's Why SMX Stock Is Skyrocketing Today

      SMX (Security Matters) PLC (NASDAQ: SMX) has exhibited a remarkable ascent in its market performance today, demonstrating an impressive 85.88% surge to reach a valuation of $3.16, as confirmed by the latest market update. In the preceding trading session, Security Matters stock concluded at $1.69, marking an appreciable uptick of 18.18%. This substantial uptrend in SMX stock is attributed to a notable influx of investment in the early hours of the trading day.

      Security Matters (SMX) has recently formalized an agreement with the True Gold Consortium on October 3, 2023. This strategic accord entails SMX’s acquisition of an additional 7.5% equity stake in TrueGold, a private entity, thereby elevating its common share holdings to 51.9%. The significance of this acquisition lies in the potential benefits derived from traceability, verification, and certification technology within the sector.

      This transaction expands SMX’s business interests into TrueGold’s pioneering Research and Development (R&D) and revenue commercialization ventures. SMX’s software technology, driven by a Distributed Ledger blockchain, signifies a notable step towards ensuring traceability and security throughout the gold value chain.

      The agreement encompasses several stipulations, including the forgiveness of outstanding payables amounting to AU$475,000 (approximately US$307,000) from TrueGold to SMX as of June 30, 2023, and the licensing of additional intellectual property to TrueGold.

      The valuation underpinning this agreement relies on a prior assessment conducted in October 2021, estimating TrueGold’s value between US$78.5 million and US$90 million, with a mean value of US$84.3 million. However, this prior valuation remains unaudited.

      Both SMX and TrueGold will appoint an independent third-party appraiser to determine an updated valuation by October 31, 2023, reflecting fair value. TrueGold retains the option, within 12 months, to repurchase the additional interest from SMX at a price based on this fair value.

      This agreement solidifies a collaborative alliance for Security Matters (SMX) within the gold industry, aimed at advancing and commercializing the True Gold platform through resource pooling, management expertise, and R&D capabilities.

      More From Stocks telegraph