SMX enters US market with molecular markers for food-grade rPET

NEW YORK - SMX (NASDAQ:SMX), whose shares have surged over 9% in the past week despite showing a weak financial health score according to InvestingPro analysis, has launched its first major U.S. initiative by partnering with a Miami plastics distributor to integrate molecular marker technology into recycled PET (rPET) resin that meets FDA regulations for Food Contact Substances.

The technology embeds permanent, invisible markers in recycled plastic materials that verify origin, composition, and compliance, allowing recycled plastics to be used in premium applications including food-grade packaging.

This development comes as the global plastics economy, valued at over $800 billion, faces increasing pressure to improve recycling verification methods. The $50 billion recycling segment has historically struggled with credibility issues regarding recycled content claims. For SMX, which currently maintains a market capitalization of just $2.06 million, this represents a significant market opportunity, though InvestingPro data indicates the company is rapidly burning through cash with a concerning current ratio of 0.08.

"By showing that molecular markers can operate within FDA-regulated frameworks, SMX has opened the door for recycled plastics to move beyond discount markets and into premium categories," the company stated in a press release.

The U.S. initiative builds on SMX’s existing partnerships in Southeast Asia, where the company works with packaging manufacturers to embed markers during the extrusion process. In Europe, SMX has conducted trials with REDWAVE demonstrating that difficult-to-recycle materials like flame-retardant and carbon-black plastics can be identified and verified.

SMX’s technology links molecular markers to blockchain-backed credits, including its Plastic Cycle Token (PCT), creating a system where recycled content can be tracked and monetized throughout the supply chain.

The timing aligns with increasing government enforcement of recycling quotas and sustainability targets set by global brands. By providing verification at the molecular level, SMX aims to transform recycled plastic from a compliance cost into a traceable asset.

The company’s technology is designed to survive all stages of the recycling process while providing real-time verification of recycled content. While the technology shows promise, InvestingPro analysis reveals additional challenges, with the company reporting negative EBITDA of -$30.95 million in the last twelve months. InvestingPro subscribers can access 12 more key insights and detailed financial metrics to better evaluate SMX’s market position and growth potential.

In other recent news, SMX has announced several notable developments. The company has formed a partnership with the European Center for Innovative Textiles (CETI) to develop technology for textile traceability, addressing the European Union’s regulatory requirements. Additionally, SMX and BT-Systems’ Competence Center REDWAVE have demonstrated new technology that enables the recycling of previously unrecyclable plastics, showcasing their capabilities before the European flame-retardant authority NAFRA. SMX also completed proof-of-concept trials for its plastic sorting technology, collaborating with RedWave to validate the sorting of food-grade and flame-retardant black plastics.

Furthering their efforts in recycling, SMX has signed a Letter of Intent with REDWAVE to integrate molecular traceability technology into industrial recycling systems. This partnership aims to enhance the verification of recycled materials by combining SMX’s molecular markers with REDWAVE’s detection systems. In a significant international development, SMX is partnering with Singapore’s Agency for Science, Technology and Research (ASTAR) to launch the world’s first national plastics passport system. This system utilizes SMX’s molecular marker technology to embed unique codes into plastics, creating digital passports for materials throughout their lifecycle.

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