SMX Secures Majority Stake in True Gold Consortium
SMX (Security Matters) PLC, a leading provider of traceability, verification, and certification technology, has announced a significant acquisition that will strengthen its position in the gold industry. The company has signed an agreement with True Gold Consortium Pty Ltd (“TrueGold”) to acquire an additional 7.5% equity stake, increasing its common share holdings in TrueGold to 51.9%.
This strategic move allows SMX to diversify its operations into TrueGold’s pioneering ventures in Research and Development (R&D) and revenue commercialization. TrueGold utilizes SMX’s advanced next-generation technology, including its Distributed Ledger blockchain, to ensure traceability and security across the gold value chain. By joining forces, SMX and TrueGold aim to redefine standards for transparency, security, and authenticity within the industry.
As part of the agreement, TrueGold will waive outstanding payables amounting to AU$475,000 (approximately US$307,000) owed to SMX as of June 30, 2023. In return, SMX will license additional intellectual property to TrueGold. The valuation of this transaction is based on a previous assessment conducted in October 2021, which estimated TrueGold’s worth between US$78.5 million and US$90 million. However, both companies will commission an independent third-party appraiser to provide an updated valuation by October 31, 2023.
H. Alon, CEO of SMX, expressed his enthusiasm for the partnership, stating that it solidifies a gold industry alliance and fosters collaborative efforts in developing and commercializing the True Gold platform. The acquisition demonstrates a mutual endeavor to pool resources, management acumen, and R&D capabilities to address industry challenges and drive innovation.
SMX integrates chemistry, physics, and computer science to create transparency and trust across multiple industries. With nearly 100 patents supporting its unique marking, measuring, and tracking technologies, SMX enables clients to deploy transparency at all levels of development and provide stakeholders with a complete provenance of material composition and history. This helps companies address manufacturing challenges, meet ESG goals, and transition to a low-carbon economy.
TrueGold, on the other hand, leverages SMX’s technology to invisibly mark and store multiple data types at a molecular level, ensuring secure and fully transparent traceability from the mine to the finished product. Their goal is to become a global industry standard for gold trade, both physically and digitally.
This acquisition marks a significant milestone for SMX and TrueGold, as they join forces to revolutionize the gold industry. With their combined expertise and innovative solutions, they are well-positioned to redefine standards and drive positive change in the sector.