SMX and Ybyrá Capital near Brazil trade deal

MIAMI - SMX (Security Matters) Ltd. (NASDAQ:SMX) and Ybyrá Capital S.A. are approaching the finalization of a partnership that could significantly impact Brazil's commodities market. The collaboration, first announced in December 2024, aims to enhance supply chain transparency, accountability, and sustainability through the integration of molecular marking and blockchain technology.

The partnership brings together SMX's innovative technology, which allows for the embedding of invisible markers into materials at a molecular level, with Ybyrá's extensive portfolio in South American commodities and real estate development. The joint venture is expected to provide a comprehensive solution for certifying and verifying the origins of commodities, a critical need in light of increasing global market regulations.

Brazil's position as a leading exporter of commodities such as soybeans, coffee, and beef, with exports totaling billions of dollars annually, positions the country to potentially benefit from the enhanced traceability capabilities offered by the partnership. This could prove particularly advantageous as Brazil navigates new regulations, such as the European Union's deforestation-free sourcing requirements.

The financial implications for SMX and Ybyrá are also notable. The combined assets of the two companies are valued at over $600 million, a figure that dwarfs SMX's market cap of $5.45 million as of the previous Friday. For investors, this suggests the potential for immediate growth upon the deal's completion.

Beyond the financial gains, the partnership is poised to set new standards for sustainability in global trade. SMX's blockchain platform enables the creation of digital twins of commodities, providing stakeholders with real-time data on product origins and environmental impact. This level of transparency aligns with evolving trade policies and consumer demand for sustainable products. InvestingPro subscribers can access detailed financial health scores and additional insights to better evaluate the company's long-term sustainability prospects.

The deal is not only seen as a significant step for the involved companies but also as an opportunity for Brazil to lead in ethical and transparent commodities trade. As the agreement nears its final stages, the potential for Brazil to leverage its natural resource wealth sustainably becomes increasingly apparent.

This article is based on a press release statement from SMX Ltd. and does not include any speculative content or endorsements of claims. The partnership's details and implications are presented as they have been announced, without additional commentary or analysis.

In other recent news, SMX PLC is currently facing potential delisting from the Nasdaq due to its share price falling below the required minimum. The company plans to request a hearing before a Nasdaq Hearings Panel to seek continued listing on The Nasdaq Capital Market. However, there is no guarantee that the Hearings Panel will decide to maintain the company's listing.

In a significant development, SMX PLC and Ybyra Capital have announced a potential merger, expected to be finalized in the first half of 2025. This merger aims to enhance global trade transparency and accountability, particularly between South America and the United States. SMX plans to integrate its digital platform traceability technologies with Ybyra's operational infrastructure.

In terms of financials, SMX secured approximately $5.35 million through a private placement deal with institutional investors, facilitated by Aegis Capital Corp. and ClearThink Securities. This funding will support the company's general corporate purposes and working capital needs.

Lastly, SMX initiated a reverse stock split of its ordinary shares at a 75:1 ratio. This strategic move is part of SMX's efforts to meet NASDAQ's minimum bid price requirement for continued listing. These recent developments highlight SMX's ongoing efforts to maintain its listing status on the NASDAQ exchange and secure funding for its operations.

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