SMX (Security Matters) PLC announced on Thursday that it has completed the conversion of $20.6 million in convertible debt into equity, marking the full conversion of all notes issued in December 2025.
The transaction resulted in the issuance of approximately 1.23 million ordinary shares. According to the company, the conversion eliminates legacy financing restrictions, therefore giving management greater flexibility to execute its technology roadmap.
Despite the strategic benefits cited by SMX, investor reaction was sharply negative. Shares fell 23.44% during afternoon trading, dropping to $26, according to Yahoo Finance.
This selloff marks the continuation of a prolonged period of weakness for the stock. Indeed, over the past 12 months, SMX shares (NASDAQ: SMX) have lost more than 99% of their value, reflecting persistent investor concerns.
Core Technology Anchors Company Strategy
SMX’s business centers on a material-embedded identity platform that integrates molecular markers directly into materials during the manufacturing process. Because these identifiers become part of the material itself, they remain intact throughout a product’s lifecycle.
According to the company, the technology enables authentication, regulatory tracking, and lifecycle verification, while also supporting circular economy initiatives such as material recovery programs.
Funding Runway Provides Near-Term Stability
Alongside its technology push, SMX has emphasized its financial position. Earlier this week, the company stated that it has sufficient funding to support operations through early 2026.
SMX also highlighted its focus on expanding the Plastic Cycle Token, alongside investments in verification tools, digital infrastructure, and adoption across global supply chains.
Moreover, the company announced a platform expansion on January 2. The expansion adds tracking capabilities for latex and rubber gloves, a segment the company characterizes as a particularly complex waste-management challenge. Specifically, the system embeds invisible molecular markers into gloves during production, allowing tracking from factory output through final disposal.
While the debt conversion simplifies SMX’s balance sheet and removes financing constraints, the sharp market reaction underscores lingering uncertainty. Nevertheless, SMX continues to position technology expansion and near-term funding stability as central to its strategy.
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