Brazil's Commodities Market Can Set New Benchmarks With SMX and Ybyrá Partnership

Rhea-AI Summary

SMX (NASDAQ:SMX) and Ybyrá Capital S.A. announced a strategic partnership aimed at transforming Brazil's commodities market. The collaboration, revealed in December 2024, combines SMX's molecular marking and blockchain traceability technology with Ybyrá's logistics infrastructure, which manages over $1 billion in assets.

The partnership targets Brazil's major commodity sectors, including soybeans ($47.2B exports), frozen beef ($11B), and coffee ($8.86B). SMX's technology embeds invisible molecular markers into raw materials and creates blockchain records to verify origin and supply chain integrity. This solution addresses growing demands for sustainability and ethical sourcing in global trade.

The collaboration's potential value significantly exceeds SMX's current market cap of $4.75M, with an implied valuation previously noted at over $600M. The partnership aims to enhance Brazil's position in global trade while meeting stringent EU regulations on deforestation-free sourcing and supporting circular economy initiatives.

Positive

• Partnership with $1B+ asset management firm Ybyrá Capital
• Access to Brazil's massive commodity markets ($47.2B soybeans, $11B beef, $8.86B coffee)
• Implied partnership valuation of $600M vs current $4.75M market cap

Negative

• Deal still in Heads of Agreement phase, not yet finalized
• Current low market capitalization of $4.75M indicates significant market skepticism

MIAMI, FL / ACCESS Newswire / January 28, 2025 / SMX (Security Matters) Ltd. (NASDAQ:SMX) and Ybyrá Capital S.A. are on the brink of a transformative partnership poised to redefine Brazil's role in global trade. Announced in December 2024 and updated in a recent 6-K filing, the referenced Heads of Agreement reflect a shared vision to revolutionize supply chain transparency, accountability, and sustainability. This collaboration goes beyond a standard business deal-it's a framework to unlock Brazil's natural resource potential while setting new benchmarks in ethical and sustainable trade.

Ybyrá Capital, a rising force in South America's commodities and real estate sectors with over $1 billion in assets under management, brings significant resources to this planned partnership. When combined with SMX's molecular marking and blockchain-enabled traceability technology, the planned alliance represents a cutting-edge integration of infrastructure and innovation that addresses a critical gap in the commodities market: seamless, end-to-end traceability from source to consumer.

This partnership is more than strategically warranted; it has the potential to transform a fragmented industry grappling with the complexities of an increasingly regulated global market. Brazil, a global leader in commodities such as soybeans, coffee, and beef, faces mounting scrutiny from trade policies demanding greater sustainability and ethical sourcing. The combined strengths of SMX's traceability technology and Ybyrá's logistics network offer a timely solution to these challenges. Here's how:

Unlocking Economic Potential
SMX's technology embeds invisible molecular markers into raw materials, generating immutable blockchain records to verify origin and supply chain integrity. Coupled with Ybyrá's robust logistics infrastructure, this partnership could elevate Brazil's commodities to new global standards, fostering international market transparency, accountability, and competitiveness.

That could provide an enormous incentive to help close this deal. Remember, Brazil's agricultural sector generates billions annually, with soybeans, beef, and coffee leading the charge. In 2022, the country exported $47.2 billion in soybeans, $11 billion in frozen beef, and $8.86 billion in coffee. By integrating SMX's traceability solutions, these revenue streams could become more efficient and lucrative, benefiting stakeholders from farmers to wholesalers to end-use consumers and, with a circular economy incentive, back again.

Here's the better news. The impact extends beyond agriculture. Brazil's mining sector-encompassing bauxite, gold, and iron ore-could also benefit from SMX's technology, ensuring compliance with ethical sourcing standards as global demand for sustainably sourced raw materials rises in Europe and Asia.

Pioneering a New Era of Sustainable Trade
For investors, the numbers speak volumes. SMX's roughly $4.75 million market cap significantly undervalues this partnership's intrinsic value and potential, noting an implied valuation in a prior release already exceeding $600 million. Beyond immediate financial benefits, the collaboration positions both companies as leaders in a high-demand market. As important, a consummated partnership has the power to redefine sustainability in global trade, especially with SMX's blockchain-backed platform offering real-time insights into product origins, compliance, and environmental impact-crucial endpoints as sustainability becomes a non-negotiable trade requirement.

Brazil's $53.2 billion soybean industry illustrates the potential. Stringent EU regulations on deforestation-free sourcing make SMX's technology invaluable in preserving market share. Similarly, Brazil's $7.4 billion coffee industry can leverage traceability to meet rising consumer demand for ethically sourced products.

Beyond commodities, the planned alliance aligns with global efforts to foster circular economies. SMX's technology enables post-consumer tracking, supporting recycling and resource recovery in sectors such as biodiesel, where soybean oil plays a key role. Together, SMX and Ybyrá can set new standards for efficiency and accountability in global trade.

Brazil's Opportunity to Lead
The bottom line is that this partnership can be more than a milestone for the companies involved-it's a potential game-changer for Brazil. By embracing this collaboration, Brazil can redefine its role in the global economy, setting a precedent for ethical trade practices that resonate across industries and borders.

Moreover, by welcoming this partnership, Brazil can leverage its natural resource wealth to drive sustainable growth, demonstrating that profit and purpose can coexist. At the same time, SMX and Ybyrá can offer a blueprint for innovation to harmonize sustainability with prosperity-a definite win-win proposition for all, including the planet.

About SMX (Security Matters) Public Limited Company
As global businesses face new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy.

Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: matters relating to the Company's fight against abusive and possibly illegal trading tactics against the Company's stock; successful launch and implementation of SMX's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in SMX's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; SMX's ability to develop and launch new products and services, including its planned Plastic Cycle Token; SMX's ability to successfully and efficiently integrate future expansion plans and opportunities; SMX's ability to grow its business in a cost-effective manner; SMX's product development timeline and estimated research and development costs; the implementation, market acceptance and success of SMX's business model; developments and projections relating to SMX's competitors and industry; and SMX's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; any lingering effects of the COVID-19 pandemic on SMX's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which SMX operates; the risk that SMX and its current and future collaborators are unable to successfully develop and commercialize SMX's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that SMX is unable to secure or protect its intellectual property; the possibility that SMX may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in SMX's filings from time to time with the Securities and Exchange Commission.

This content is printed with permission from Hawk Point Media Group, Llc.

Additional Disclaimers and Disclosures: This is sponsored content. Hawk Point Media Group, LLC. (HPM) has been compensated, or expects to be, to produce and distribute digital content for SMX Ltd. It should be expressly understood that HPM is not operated by a licensed broker, a dealer, or a registered investment adviser. It should also be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. HPM reports/releases are commercial advertisements and are for general information purposes ONLY. The information made available by HPM is not intended to be, nor does it constitute, investment advice or recommendations. The contributors do NOT buy and sell securities covered before or after any particular article, report and/or publication. HPM holds ZERO shares and has never owned stock in SMX Ltd.. While HPM does not own or market shares, it is prudent to expect that those hiring HPM including that company's owners, employees, and affiliates, may sell some or even all of the SMX Ltd. shares that they own, if any, during and/or after this engagement period. Always do your own due diligence prior to investing in any publicly traded company. For a full disclaimer and disclosure statement, click HERE.

Media contact for this article:
ken@hawkpointmedia.com

Contact Information
Ken Ellis
ken@hawkpointmedia.com

SOURCE: SMX (Security Matters)

View the original press release on ACCESS Newswire

FAQ

What is the potential value of SMX's partnership with Ybyrá Capital in Brazil?

The partnership has an implied valuation exceeding $600 million, significantly higher than SMX's current market cap of $4.75 million.

How will SMX's technology benefit Brazil's commodity exports?

SMX's molecular marking and blockchain technology will provide traceability and verification for Brazil's major commodities, helping meet international sustainability standards and EU regulations.

What markets will the SMX-Ybyrá partnership target in Brazil?

The partnership will target Brazil's major commodity markets, including soybeans ($47.2B), frozen beef ($11B), coffee ($8.86B), and mining sectors like bauxite, gold, and iron ore.

When was the SMX-Ybyrá partnership announced?

The partnership was announced in December 2024 and updated in a subsequent 6-K filing.

How does SMX's technology work in commodity tracking?

SMX's technology embeds invisible molecular markers into raw materials and creates immutable blockchain records to verify origin and supply chain integrity.