The SMX (Security Matters) PLC is a company that gives materials memory and it creates a culture of transparency and trust across multiple industries. The company has nearly 100 patents that support unique marking, measuring, and tracking technologies. This allows their clients to deploy transparency at all levels of development.
Also, it provides all stakeholders with a complete origin of material composition and history, virgin material to be recycled, and ESG goals while maintaining sustainable growth. As a result, SMX technology assists other companies in meeting their ESG obligations and transitioning more successfully to a low-carbon economy.
Furthermore, as per the press release of the company dated October 3rd, 2023, SMX (Security Matters) PLC (NASDAQ: SMX), it agreed to buy another 7.5% of True Gold Consortium Pty Ltd. This deal will increase SMX’s ownership in TrueGold to 51.9%.
Basically, trueGold is a company that uses SMX’s technology to track, verify, and certify its products in a sector that is anticipated to grow. SMX and the other TrueGold shareholders have strengthened their partnership with this deal. It also diversifies SMX’s operations into TrueGold’s ventures in research and development and revenue commercialization.
The agreement is based on a valuation of TrueGold from October 2021, which estimated its worth between $78.5 Million and $90 Million, using the mean value of $84.3 Million. This valuation was neither audited or reviewed.
The agreement also includes a waiver of outstanding payables from TrueGold to SMX, amounting to $307,000 and SMX licensing additional intellectual property to TrueGold.
According to the agreement, SMX and TrueGold will commission an independent third-party appraiser to determine an updated valuation of TrueGold. This valuation will reflect the fair value of TrueGold’s assets and liabilities as of the closing date.
SMX will report its share of this fair value in its financial statements, and TrueGold will have the right, within 12 months, to repurchase the additional interest from SMX for a price based on this fair value. There may be significant differences between the previous valuation from October 2021 and the updated valuation.
How the Collaboration Could Boost SMX Price?
SMX’s stock price was $1.23 as of November 15, 2023, which is a 1.60% drop from the previous close. The stock has been underperforming the market and its peers but the stock has been investing in innovation and expansion. Therefore, the price alone may not reflect the long-term potential of the collaboration. It could show the results of its strategic initiatives and growth potential. This could improve its outlook and valuation.
The collaboration could increase SMX’s revenue and profitability, as it will receive royalties from TrueGold for using its technology and intellectual property.
Moreover, the collaboration may enhance SMX’s reputation and brand value, as it could demonstrate its ability to give innovative and reliable solutions for the gold industry.
This might probably help in increasing SMX’s customer base and market share and this may also improve its financial performance and attract more investors.
In addition, the collaboration could also create synergies and opportunities for SMX and TrueGold, as both companies will pool their resources, expertise, and networks to develop and commercialize the True Gold platform. This may lead to new product developments, services, and markets for both companies.
What the SMX Chart Shows
The SMX stock’s average volume for the last 10 days is 37.761K and its current volume is 42.427K. The SMX stock has a float of 529.658K shares and a market cap of $2.732 Million. Also, the stock is below major 20, and 50-day EMAs.
It looks like the SMX stock price could rise, as a bullish pattern known as declining wedge is building up in the longer trend analysis on the chart. This could unleash its potential to jump above the resistance level and soar to new altitudes.
To rise, the price needs more buying power. Moreover, if buyers ramp up their pressure, SMX stock might surge strongly from the current level and surge above the parallel channel. The possible targets are between $2.0 and $3.0.
On the contrary, if SMX stock fails to hold its grip and breaches below $1.0, then it may hit $0.50.
Summary
By acquiring more shares in TrueGold Consortium, the SMX PLC has solidified its partnership, diversified its operations, and fostered new innovation.
This deal could have a probable positive long-term effect on SMX’s stock price, as it may improve its revenue, profitability, and reputation.
Furthermore, It also could have positive brand value, customer base, market share, social and environmental impact, competitiveness, and innovation.
SMX and TrueGold aim to redefine standards for transparency, security, and authenticity within the gold value chain.
Technical Levels
Support Levels: $1.0 and $0.50
Resistance Levels: $2.0 and $3.0
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/11/15/can-smx-and-truegold-collaboration-boost-the-smx-price-to-10/