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SMX’s Strengthened Balance Sheet Fuels Mission Of Changing The Rules Of Global Manufacturing Transparency ($SMX)
SMX PLC's (NASDAQ: SMX) balance sheet just got stronger. And that's more than excellent news from a fundamental perspective. It also positions SMX better than ever to capitalize and, as importantly, fuels SMX's seizing on enormous market opportunities. It resulted from SMX amending and/or satisfying three loan agreements, two dated September 7, 2015, by and between Degania A. Business AGSHAH Ltd. and Kibbutz Degania and Kamea-the United Kibbutz Movement Ltd. and another with Ketura International Energy AGSHAH Ltd. and Kibbutz Ketura. Here's the interesting part about these transactions. Unlike most, where investors want more, the amendments benefit SMX. In one, the investors exchanged the entirety of its $657,000 note receivable into shares, 487,281 to be precise, at a per-share value of roughly $1.34. That transaction was an above-the-market exchange, considering that SMX stock currently trades at $1.24. The other transaction is an impressive exchange as well. And like the other two, it is immediately accretive. (*share price on 9/25/23, 10:17 AM EST, Yahoo! Finance)
In that one, SMX said that on September 15, 2023, it paid $250,000 to EF Hutton, division of Benchmark Investments, LLC, pursuant to a Satisfaction and Discharge of Indebtedness to a Promissory Note Dated March 7, 2023, to satisfy an obligation on the books as $900,000. That stroke of the amendment pen deemed that debt as fully paid, satisfied, canceled, discharged, and no longer of any further force or effect. In other words, in a single filing on 9/21/23, SMX informed its investors that over $1.48 million in debt that weighed on its balance sheet is gone. For a company shifting from fast-paced to hyper-speed growth, losing that burden is timely to its mission of introducing and providing some of the most compelling invisible "marking" technology ever developed. Moreover, it's serving an immediate purpose- facilitating a global mission of manufacturing transparency, sustainability, and accountability, often referred to as a circular economy.
More than contributing to that cause, SMX has changed the rules of engagement for how a circular economy gets managed. And as businesses familiarize themselves with how revolutionary and valuable SMX technology is, adoption into their manufacturing processes could be swift. That's more than welcomed news for a world focused on sustainable and responsible manufacturing; it creates the likeliest path of least resistance for SMX revenues higher. With trillion-dollar economies all playing toward that same end goal, those increases can be exponential.
Source: New To The Street TV- Jane King
Video Link: https://www.youtube.com/embed/npGVVhQBIfc?si=TmYTOjYAoYyBQD7v
Changing How Industry Can Prove Compliance
That's not an unlikely proposition. In fact, those who thought the invention of barcoding and the billions in value it generated was next-gen technology are getting a loud wake-up call. The message told and heard in a way people can understand is that SMX technology is "barcodes" on steroids. And not just enough juice to enhance performance, but at a level that would make any novice a world champion in any discipline where strength matters. But here's the value kicker: SMX technology is not only more robust in use applications, it's invisible- uniquely and permanently applied to metals, rubber, liquids, plastics, and other materials, adding a specific signature that becomes a part of that material's "DNA" forever.
It's more than revolutionary; it will change manufacturing globally by transforming manufacturing landscapes, providing the most potent identification means for precious metals, and ensuring transparency and accountability from a marking technology that can be used pre-, mid, and post-production to keep a record of origin, the number of times a product has been used, how many times and where it's been recycled. As importantly, it provides a transparent accounting and authentication tool for companies committed to global circular economy initiatives.
Admittedly, covering this company is exciting. After all, it's rare to have the opportunity to help introduce things to the world that no other company can do. And just as importantly, SMX's IP protects the likelihood that none ever will. Furthermore, it's a story people should want to hear. For many reasons.
Foremost, SMX technology is a transparency, accountability, and sustainability initiatives game changer after developing an invisible marking technology to track raw materials from virgin use through pre-, pro, and post-production life cycles. In other words, it's a one-and-done application, which, in this case, is an excellent thing. Once added to the material, rigorous testing shows it can't be altered- surviving melting, grinding, burning, water immersion, and other potentially disintegrating processes. That inherent strength makes its applications virtually limitless.
A Value-Adding Feature On Its Way To Mainstream
Moreover, it's helping pave the path toward mainstream use. In fact, SMX has already proved its viability to mark plastics, rubber, precious metals, oil, and other liquids. The technology is more than innovative and unique to SMX; it also goes beyond what people generally call 21st-century advancements, providing its users an unparalleled and verifiable means to act as authenticators, validators, and facilitators of an entire supply chain process. Additionally, with its integration into blockchain technology, the legacy of materials mined, used, or wasted maintains a historical record. In other words, miners, producers, suppliers, and recyclers, for the first time ever, can have the ability to track commitments made and kept.
Industries are taking notice, and rightly so. SMX's B2B white label platforms can be the most critical contributor to facilitating a circular global economy, with its use applications extending to timber, rubber, palm oil, cocoa, steel, gold, luxury goods, leather, plastics, and non-ferrous metals providing a verifiable means to reduce their carbon footprints and waste. That's not SMX's ambition; they are already providing that means. So far, SMX announced working with The Perth Mint, Continental Rubber, and a major steel manufacturer, utilizing SMX marking technology as its product life cycle transparency and supply chain validation source. And more are expected to follow, especially as use cases supporting its value accrue.
SMX published a compelling update working with Continental. In that report, SMX announced success in verifying a marker substance for natural rubber in a tire for the first time, with the marking surviving throughout the entire production process. The dedicated marker technology, which both companies optimized for use in natural rubber, is designed to create greater transparency along the value chain of tires and technical rubber products from Continental. Embedding special security features, using the marker substances enables the invisible marking of natural rubber with information on its geographical origin. The value to Continental isn't going unappreciated.
The established precedent means that responsibly sourced natural rubber and its origin can be verified at every stage of the supply chain all the way through to the customer. By doing so, Continental further strengthens its pioneering role in its commitment to greater transparency along its supply chain. SMX noted in its release that by 2050 at the latest, Continental expects that all materials it uses in its tire production will originate from responsible sources. How will they do that? Well, SMX provides a great start by providing them the DNA of the material right up front. In fact, more than a great start, Continental likely has no reason to look elsewhere to ensure meeting its internal compliance initiative; SMX marker technology may already be the most excellent and easily used way to ensure that the natural rubber used in its tires is grown and responsibly sourced.
Passing Rigorous Resiliency Testing
If integration by Continental goes as expected, SMX stock could be off to the races. Remember, in its note, SMX said that Continental intends to use the new marker technology on a larger scale while sourcing its rubber and integrating it into other rubber products. For SMX, that intent could send revenues soaring, and certainly at a pace faster than many expected. Moreover, as part of the industrialization of this technology, the value inherent to SMX technology can increase by its potential linking of the markers with blockchain technology, which is generally considered tamper-proof.
Inclusion in the blockchain would provide additional support for tamper-free monitoring, compliance with quality standards, and an exchange record along the complex natural rubber supply chain. The information is so valuable that few should be surprised if Goodyear (NasdaqGS: GT) and/or Bridgestone Corp (OTC Other: BRDCY) follow Continental's lead. That proposition is more than likely; it's probable.
And it could happen faster than many expect. Why? Because in layperson's terms, SMX offers a robust, innovative, and scalable solution for supply chain authentication, traceability, and transparency to transform businesses for participation in the circular economy. Its technology gives materials in solid, liquid, and gas forms the ability to maintain a virtual memory of origination, processing, and supply chain journey, including the ability to authenticate provenance, as well as to track recycling loop counts and the percentage of certified and/or recycled materials contained. That's not all.
SMX marking technology is also easy to implement, making it an efficient, cost-effective drop-in solution within an existing supply chain, enabling substantial benefits for manufacturers, consumers, and others in the value chain – and the planet, including providing the necessary data for product recycling and reuse. Additionally, the SMX technology addresses the issue of the increase in waste globally by serving the rise in demand for verified, usable recycled materials by creating a commoditized, tradable certified asset, which is the recycled material, which can be traded and sold to other players in the value chain and ecosystem. That could open massive deal-making opportunities, including with thousands of private companies that resell millions of megatons per year of recycled plastics, resins, and other fit-for-new manufacturing materials.
By the way, while only recently getting its introduction to the US markets, the SMX technology has been in active operational use on a national scale by the Israeli Government for over a decade. Since then, SMX has been able to do more than build its resume; it's proven its value in contributing to environmental sustainability by meeting the highest expectations. That trend will continue. SMX announced joining the Global Platform for Sustainable Natural Rubber (GPSNR). This voluntary membership organization brings together organizations, companies, societies, institutions, and government agencies to help foster improvements that have socio-economic and environmental benefits across the natural rubber supply chain. More than a casual member, SMX joins GPSNR with a tangible and measurable solution to mitigate the common problems associated with sourcing natural rubber, including deforestation and biodiversity loss, labor rights, living and working conditions, gender equality, land grabbing, cruel margins for farmers, low and fluctuating prices, and lack of access to equity. All tolled, the SMX mission is broad.
SMX Targets A Global Need That Can Be Worth Billions
And considering its known value, supported by well-earned precedent to drive inherent potentials, SMX's marking technology applications could make it one of the most important companies in generations. That's not an overzealous presumption. Remember, SMX has demonstrated success well beyond marking rubber. They have also highlighted the technology's use in marking gold bars, timber, plastics, leather, and other non-ferrous metals. Better stated, SMX can generate revenues from virtually any market, anywhere. Considering the global economy is worth many trillions, it's logical to surmise that SMX has positioned itself in the sweet spot of opportunity by being the only known company able to verify materials from cradle to grave.
Thus, at $1.24 a share today, SMX stock may present a value proposition that is too attractive to ignore. Ahead of its time? Maybe. But every great company has been, including Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which brought products to market when the thought of carrying a cellphone with mainframe capabilities and seamlessly operating desktop computers were the furthest expectations in people's minds. More importantly, the speed at which both companies grew into their opportunities was unprecedented.
Of course, their contributions have changed lives globally. But as important for a company like SMX, they showed that turning ambitions into dollars can happen quickly, which, for SMX, is the best incentive to lean into, which, according to its updates, is precisely what they're doing.
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