Shares in Security Matters (SMX), the Ireland-based track-and-trace and authentication tech firm, surged over 17% on Friday morning, adding to the previous day’s 24% gain. The momentum appears to be from the promotion of its verification technology for the cannabis industry.
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Trump Reclassifies Marijuana
On Thursday, cannabis stocks such as Canopy Growth (CGC), Tilray Brands (TLRY), and Cronos Group (CRON) surged after President Donald Trump issued an executive order reclassifying marijuana as a less dangerous drug, thereby easing restrictions on the drug and expanding access to it. Industry observers expect the move — which they have been eagerly awaiting — to help improve the fortunes of struggling cannabis companies.
How Does SMX’s Tracker Work for Cannabis?
On December 17 — a day before the order was approved — SMX released a press statement promoting its molecular identity technology for tracking cannabis across the supply chain, from cultivation to final sale. This can help growers improve processing and labeling, help regulators authenticate products, and close other “supply chain vulnerabilities,” SMX noted.
“Systems built on declarations introduce friction, delays, and risk. By providing a consistent and auditable source of truth, SMX simplifies verification for regulators and customs authorities,” SMX explained. “This same verification layer also helps address long-standing fragmentation within the cannabis sector.”
Last month, SMX stock surged 250% after presenting its technology for tracking precious metals such as gold and silver at a Dubai conference. The firm noted that its unique molecular markers can help address the lack of transparency and risks of fraud in the precious metals industry.
Is SMX a Good Stock to Buy?
On Wall Street, SMX’s shares do not have analyst coverage.
However, TipRanks’ Technical Analysis page indicates that the stock’s Overall Consensus/Technical Sentiment over the past month is a Sell. This is based on 10 Bearish, one Neutral, and five Bullish sentiments.
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