NEW YORK - SMX Public Limited Company (NASDAQ: SMX), a technology firm specializing in marking and tracking solutions for carbon neutrality, has announced the initiation of a reverse stock split of its ordinary shares at a ratio of 75:1. The adjustment will take effect on Monday, July 15, 2024, under the current ticker symbol "SMX".
The reverse stock split was previously approved by shareholders on June 11, 2024, and is intended to increase the per-share trading price of the company's common stock. This move aims to satisfy NASDAQ's minimum bid price requirement for continued listing on the exchange.
As a result of the split, the number of outstanding ordinary shares will decrease from approximately 39.6 million to around 528 thousand. The new CUSIP number for the ordinary shares will be G8267K208, and the new ISIN code will be IE000IG23NR9.
Options, warrants, and other convertible securities of the company will be adjusted in proportion to the reverse stock split. Shareholders will not receive fractional shares; instead, any fractional entitlements will be aggregated and sold, with shareholders receiving the proceeds from these sales.
Shareholders holding stock certificates will receive instructions from the exchange agent, Continental Stock Transfer & Trust Company, regarding the exchange process. Those with shares in book-entry form or through a bank, broker, or other nominee will see the changes reflected in their accounts on or after Tuesday, July 16, 2024.
The company, which is at the forefront of providing digital platforms for the transition to a low-carbon economy, has stated that no additional action is required from shareholders holding shares through banks, brokers, or nominees.
This announcement is based on a press release statement from SMX Public Limited Company.
InvestingPro Insights
In light of SMX Public Limited Company's recent announcement of a reverse stock split, investors are likely evaluating the company's financial health and future prospects. According to InvestingPro data, SMX has a Price/Book ratio of 0.4 as of the last twelve months ending Q4 2023, which could indicate that the company's stock is currently undervalued relative to its book value. Additionally, the company's stock has experienced significant price depreciation, with a 1 Year Price Total Return of -96.07% as of the date provided.
Two critical InvestingPro Tips for SMX highlight the company's challenges: SMX suffers from weak gross profit margins and the valuation implies a poor free cash flow yield. These factors suggest that investors should approach the stock with caution, considering the company's financial performance and market valuation.
For those interested in a deeper analysis, InvestingPro offers more tips and insights that could be crucial in making informed investment decisions. Subscribers can benefit from an array of analytics, including the InvestingPro Fair Value estimate of 0.19 USD for SMX, which might provide a different perspective on the stock's potential value. For access to these additional tips, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
Investors should also note that SMX does not pay a dividend to shareholders, which may affect the decision-making of income-focused investors. As the company navigates through its compliance efforts with NASDAQ's listing requirements, these financial metrics and insights can offer a clearer picture of SMX's standing in a highly volatile market.
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