Just a few days after soaring almost 250% higher, shares in Security Matters (SMX), the Ireland-based track-and-trace and authentication tech firm, are back with a new rally. SMX rose by 135.45% on Friday afternoon to reach $331.98 per share.
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The latest rally came two days after the company, at its annual general meeting in Dubai, made significant changes to its share structure. For instance, the meeting gave the go-ahead for the company to issue fresh stock and wipe out a huge block of the company’s deferred ordinary shares.
The shares being canceled are a low-ranking class that comes with little or no voting rights and only attracts dividends after all other share classes have been sorted. In other words, these shares have minimal economic value.
Security Matters Rejigs Share Structure
The latest move signals a deliberate overhaul of how the company’s equity is structured and a move to make the main ordinary shares more straightforward and attractive to investors. Last month, the authentication tech firm similarly amended its 2022 Incentive Equity Plan, enabling the company to significantly expand the pool of its shares.
Security Matters Raises $111.5 Million
Another likely contributory factor to the latest jump is Security Matters’ latest fundraising effort through an equity purchase agreement. On December 1, Security Matters disclosed that it had arranged a deal to raise up to $111.5 million by selling new shares and a convertible loan to an investor called Target Capital.
The company plans to use the funds to support its business as well as hold crypto on its balance sheet as a reserve asset.
As an authentic company, SMX makes technology to monitor risks and fraud in the precious metal market. For instance, its unique molecular markers — which are registered digitally on the blockchain — can be placed on precious metals such as gold and silver for easier tracking.
Is SMX a Good Buy?
As a penny stock, however, SMX remains highly volatile. It closed November 21 at $4.67 per share — a sharp contrast to Friday’s closing price of over $331.98 per share. Since the start of the year, the stock has plunged by nearly 100%.
Moreover, TipRanks’ Technical Indicator currently shows that the Overall Consensus on Security Matters’ stock is Neutral.
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