SMX Flags Ongoing Use of Reverse Stock Splits and Mounting Liquidity, Listing Risks

SMX Public Limited Company ( (SMX) ) has provided an update.

On April 7, 2026, SMX (Security Matters) PLC disclosed that under Irish law it may implement additional reverse stock splits at its discretion through at least the remainder of fiscal 2026 and beyond, without seeking further shareholder approval. The company said any decision on timing and ratios would depend on market conditions, trading prices of its ordinary shares and Nasdaq Capital Market requirements, noting that past reverse splits were often triggered by price pressure from sales tied to convertible instruments.

In a detailed risk discussion, SMX warned that its history of numerous reverse stock splits has reduced share liquidity and could continue to depress its stock price if future splits do not lead to sustained price gains. The company also cautioned that reverse splits tend to increase the number of small “odd lot” holdings, potentially raising transaction costs for retail investors, and acknowledged the risk that Nasdaq could issue a deficiency notice or pursue delisting, which would materially hurt its ability to raise capital and the value and tradability of its shares.

More about SMX Public Limited Company

SMX (Security Matters) Public Limited Company is an Ireland-based foreign private issuer whose ordinary shares are listed on the Nasdaq Capital Market. The company has previously relied on reverse stock splits as a capital markets tool when facing downward pressure on its share price, particularly following conversions of convertible promissory notes or warrants that add selling pressure to the market.

Average Trading Volume: 827,025

Technical Sentiment Signal: Sell

Current Market Cap: $37.64M

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