NEW YORK – SMX (Security Matters) PLC (NASDAQ:SMX)(NASDAQ:SMXWW), a company specializing in marking, tracking, and verification solutions, announced today that it received a delinquency notice from Nasdaq due to its share price falling below the required minimum. The stock currently trades at $0.31, having lost over 99% of its value year-to-date, according to InvestingPro data. The company's ordinary shares did not meet the $1.00 minimum bid price for 30 consecutive business days, from October 8 to December 9, 2024.
The notification from the Nasdaq Listing Qualifications Staff indicates non-compliance with Nasdaq Listing Rule 5550(a)(2). Typically, a company in this situation would be granted a 180-day period to regain compliance. However, SMX is not eligible for this grace period because it has conducted reverse stock splits with a cumulative ratio of 250 to one over the past two years, under Nasdaq Listing Rule 5810(c)(3)(A)(iv).
SMX plans to request a hearing before a Nasdaq Hearings Panel to seek continued listing on The Nasdaq Capital Market. This request will temporarily halt the suspension and delisting of the company's ordinary shares and public warrants until the Hearings Panel reaches a decision. There is no certainty that the Hearings Panel will decide to maintain the company's listing or that SMX will demonstrate compliance within any extension period granted by Nasdaq.
This development is based on a press release statement from SMX. The company is known for its advanced technology solutions that aim to ensure product authenticity and supply chain transparency, which are increasingly important for businesses facing challenges related to carbon neutrality and regulatory compliance. InvestingPro analysis reveals concerning fundamentals, with a weak Financial Health Score of 1.33 out of 5 and a current ratio of 0.02, indicating potential liquidity challenges.
The future of SMX's listing status on Nasdaq remains uncertain as the company awaits the Hearings Panel's decision. This situation underscores the volatility and regulatory challenges faced by public companies in maintaining compliance with stock market rules. While InvestingPro analysis suggests the stock is currently undervalued, investors should note the company's concerning Altman Z-Score of -364.52, indicating significant financial distress. For deeper insights into SMX's financial health and more exclusive metrics, subscribers can access over 30 additional ProTips and detailed financial analysis.
In other recent news, SMX PLC and Ybyra Capital have announced a potential merger to enhance global trade transparency and accountability. The proposed merger, approved in principle by Ybyra's shareholders, is expected to be finalized in the first half of 2025. The collaboration is set to create a new standard in sustainable and ethical certification for commodities, particularly between South America and the United States.
SMX, with its digital platform traceability technologies, plans to integrate with Ybyra's operational infrastructure, driving transparent and accountable global trade. The merger aims to capitalize on the growing trade between South America and Asia.
In a separate development, SMX secured approximately $5.35 million through a private placement deal with institutional investors, facilitated by Aegis Capital Corp. and ClearThink Securities. The funds raised will support the company's general corporate purposes and working capital needs.
Furthermore, SMX initiated a reverse stock split of its ordinary shares at a 75:1 ratio, a strategic move to meet NASDAQ's minimum bid price requirement for continued listing. These recent developments are part of SMX's efforts to maintain its listing status on the NASDAQ exchange and secure funding for its operations.
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