SMX Secures Majority Stake in True Gold Consortium
SMX (Security Matters) PLC, a leading provider of traceability and certification technology, has announced a significant acquisition that strengthens 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 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 of 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, an independent third-party appraiser will conduct an updated valuation by October 31, 2023, to reflect the fair value of TrueGold’s assets and liabilities.
H. Alon, CEO of SMX, expressed his enthusiasm for the partnership, stating that it solidifies a gold industry alliance focused on achieving shared strategic objectives. The acquisition exemplifies a mutual endeavor to pool resources, management acumen, and R&D capabilities, fostering innovative solutions to address industry challenges. Alon believes that SMX and TrueGold are now better positioned to revolutionize transparency, security, and authenticity within the gold value chain, ushering in a new era of collaboration and industry innovation.
SMX is known for integrating chemistry, physics, and computer science to create transparency and trust across various industries. With nearly 100 patents supporting unique marking, measuring, and tracking technologies, SMX enables clients to deploy transparency at all levels of development, providing a complete provenance of material composition and history. This technology helps companies address manufacturing challenges, meet ESG goals, and transition to a low-carbon economy.
TrueGold, on the other hand, utilizes SMX’s advanced technology to invisibly mark and store multiple data types at a molecular level. Their blockchain digital platform aims to become a global industry standard, ensuring secure and fully transparent traceability from the mine to the finished product.
This acquisition marks a significant milestone for both SMX and TrueGold, as they join forces to drive innovation and reshape the gold industry. With their combined expertise and commitment to transparency and security, the partnership is poised to make a lasting impact on the industry.