SMX (Security Matters) Public Limited Company completed the conversion of its $20.625 million face‑value convertible notes issued in December 2025 into 1,230,698 ordinary shares. The transaction was announced on January 8, 2026 and removes the company’s remaining long‑term convertible debt from the balance sheet.
By converting the notes, SMX eliminates a $20.625 million liability and removes the associated equity overhang that could dilute future shareholders. The conversion also lifts restrictions on the company’s ability to raise capital, giving management greater flexibility to fund its circular‑materials strategy and other project development initiatives.
Management emphasized that the conversion is a “meaningful balance‑sheet inflection point” that “enhances clarity for investors, reduces structural risk, and allows management to remain focused on executing the Company’s technology roadmap and commercial programs without this financing overhang.” The move aligns with SMX’s goal of advancing its material‑embedded identity platform and expanding its circular‑materials portfolio.
Despite the positive balance‑sheet impact, SMX continues to face short‑term liquidity challenges. The company’s current ratio sits at 0.08, with short‑term obligations exceeding liquid assets. Recent filings that allow shareholders to resell up to 13 million shares have contributed to heightened market volatility, underscoring that the debt elimination does not resolve all liquidity concerns.
Overall, the conversion strengthens SMX’s long‑term financial position and provides a clearer path for future capital raising, but investors should remain aware of the company’s ongoing liquidity constraints and the potential for share dilution from resale filings.
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