Combining Assets, SMX and YBYRÁ Capital Adds the Once-Missing Link to Brazil's Manufacturing Evolution Chain

Rhea-AI Summary

SMX and Ybyra Capital announced a merger deal combining SMX's molecular marking technology with Ybyra's $1 billion infrastructure and commodities portfolio in Brazil. The merger aims to revolutionize supply chain accountability and traceability in Brazil's vast commodity markets.

The combined entity will leverage SMX's technology to track commodities from source through global supply chains, addressing important markets including soybeans ($47.2B), raw sugar ($11.5B), bovine meat ($11B), and coffee ($8.86B). Ybyra contributes with fertilizer holdings, port operations, and real estate assets across Brazil.

The deal positions the combined company to meet growing global demands for sustainable and traceable commodities, particularly under new EU regulations. The merged entity's asset base is valued at over $600 million, while SMX currently trades at a market cap of $4.16 million.

Positive

• Merger combines Ybyra's $1B asset portfolio with SMX's technology
• Access to massive Brazilian commodity markets worth billions
• Strategic positioning for EU's new deforestation-free sourcing requirements
• Combined entity valued at over $600M vs current SMX market cap of $4.16M

Negative

• None.

NEW YORK, NY / ACCESSWIRE / December 9, 2024 / SMX Ltd. (NASDAQ:SMX)(NASDAQ:SMXWW), a pioneer in digitizing physical objects for circular economies, and Ybyra Capital (B3:YBRA4), an emerging holding company focused in commodities and real estate development in South America with over $1 billion in assets under management, announced a deal that may be Brazil's most important in years. Why? Because it can allow Brazil to finally benefit fully from its massive resource base and, as significantly, watch as one of its leading commodity companies, along with SMX, usher in transformational technology that ensures supply chain accountability, traceability, and sustainability. More than watching, they can take pride in knowing its business community is at the forefront of change, proving to the world that actions do indeed speak louder than words.

There's been plenty of the latter. Unfortunately, it's done little good. On December 2nd, Packaging Europe indicated a lack of resolution at the INC-5 negotiations for a Global Plastics Treaty. That followed an August report by the same publisher that the European Commission is commencing an infringement procedure against all 27 EU Member States for falling short of legally binding collection and recycling targets, including the Packaging and Packaging Waste Directive's expectation of recycling 55-80% of packaging waste by the end of 2008.

But enough of the back story. Those following this global story are well aware of the challenges faced. Those new to the saga need to take a minute to understand just how high the stakes are from a global perspective in winning the shift toward more eco-friendly, supply chain-positive sourcing and manufacturing processes. If successful, there are no losers. Period.

A Transformative Merging of Assets and Technology

That's precisely why all eyes should be on this SMX-Ybyra deal. It may be the ultimate proving ground for demonstrating how Brazil's vast natural resources can be tracked from its source through a global supply chain by harnessing the power inherent to SMX's cutting-edge molecular marking technology and Ybyra's strategic and comprehensive infrastructure.

SMX's value contribution comes through its unique technology that embeds invisible markers into materials, creating unalterable blockchain records and unmatched traceability capabilities. Ybyra Capital complements this expertise with a network of fertilizer holdings, port operations, and real estate assets across Brazil, creating an unparalleled platform for transparent, sustainable trade. Most importantly, from an investor's perspective, combining mutual expertise has the intrinsic and inherent abilities to create a powerhouse brand, pushing the most recent one-billion-dollar valuation of the entity's asset base significantly higher.

Even if one were to recalculate using the most conservative exchange rates, the entity is still valued at well over $600 million, plenty to support the case that the path of least resistance for SMX stock, the surviving entity and currently trading with a market cap of only $4.16 million last Friday, could be paved higher. Remember, this deal gets a running start.

Revenues In The Crosshairs

Ybyra and SMX can immediately tap into substantial Brazilian commodities, including its globally traded commodities like soybeans, coffee, oils, and beef. That's just the tip of the opportunity iceberg for the two. While not a U.S. headline, the truth about Brazil's trade position is that it's a world giant in many resource-related sectors, particularly agriculture, manufacturing, and mining, where it has successfully and increasingly monetized its natural resource richness.

For instance, while Brazil is a primary global exporter of soybeans, coffee, and beef, it's also one of the largest producers of biodiesel, crude oil, and bauxite worldwide, among other crops and minerals. As of 2018, Brazil is recognized as the leading producer of coffee, producing and exporting tens of thousands of 60-kilogram bags annually, contributing to an estimated $21.8 trillion U.S. dollars of natural resource commodities, including gold, iron, oil, and timber.

SMX can mark all of that and more, meaning millions, even billions, of dollars may already be in play from a near-term revenue perspective. That's not an overzealous assessment. In 2022, Brazil was the world's biggest exporter of Soybeans ($47.2B), Raw Sugar ($11.5B), Frozen Bovine Meat ($11B), Poultry Meat ($8.95B), and Coffee ($8.86B). Factor in other massive markets where SMX technology can be included, like textiles, chemicals, lumber, iron ore, and steel; that number is certainly not excessive.

Clear Synergies That Can Turn Ambition Into Revenues

In fact, once this estimated $1 billion joint merger closes, the stage is set to start monetizing assets, enhanced by a tailwind from Ybyra's logistical and commodity expertise and demand for a seamless solution to monitor and certify product authenticity.

For Brazil, this merger couldn't come at a better time. The nation's $53.2 billion soybean industry, a cornerstone of its agricultural economy, faces increasing scrutiny under the European Union's deforestation-free sourcing requirements. SMX's ability to trace commodities back to their origins ensures compliance with these regulations while protecting Brazil's market share in Europe and Asia.

Similarly, the coffee sector, which saw exports reach $7.4 billion in 2023, benefits from SMX's technology by meeting rising global demand for sustainably sourced products. Imagine a coffee bean grown in São Paulo being tracked seamlessly from harvest to its arrival in a café in Berlin or New York. SMX makes that scenario a reality, satisfying the growing demand from consumers for sustainable, ethically sourced products. That's not all.

Connecting Massive Markets To Trade

This partnership also capitalizes on burgeoning trade between South America and Asia. With Asia's demand for natural resources surging, Brazil's role as a supplier has never been more critical. The combined capabilities of SMX and Ybyra will enable real-time traceability of exports such as palm oil, rubber, and metals, addressing concerns over sustainability and ethical sourcing. It's a game-changer by any measure.

For the first time, through SMX's blockchain-backed platform that creates a "digital twin" at the molecular level, stakeholders can access transparent, real-time data about product sourcing and compliance. This is particularly vital as global trade policies evolve, and a more focused eye than ever is on sustainability, enforced by new, historically stringent U.S. and EU standards.

The excellent news for those following SMX and Ybyra is that by combining expertise, they can dominate this expanding multi-trillion-dollar market. Not only by being in the right markets at the right time but by serving pent-up demand with unique and exclusive technology to do what others can't.

Transforming Supply Chains Across Sectors

Keep in mind that the merger, and thus, market opportunities, extends far beyond agriculture. Brazil's gold industry, valued at $5 billion annually, is also in play. SMX's technology provides a game-changing solution, ensuring that only responsibly sourced gold enters the market. The rubber industry, another vital export sector, can also benefit from SMX's traceability capabilities, which support compliance with international standards and open new revenue-generating verticals that drive ethical trade.

In the bigger picture, the partnership enhances Brazil's ability to meet global expectations for circular economies. SMX's technology allows for post-consumer tracking, fostering recycling and resource recovery in sectors like biodiesel, where soybean oil plays a significant role. Together, SMX and Ybyra can deliver comprehensive solutions that address sustainability challenges while driving economic growth for Brazil through SMX's and Ybyra's ability to integrate advanced traceability with South America's logistical backbone, creating a new benchmark for accountability and efficiency in global trade.

This is more than a business deal for Brazil-it's a blueprint for sustainable growth. SMX and Ybyra are not just solving problems; they're creating opportunities and linking South America's resources to the world with accountability and innovation. As industries worldwide strive for measurable sustainability, Brazil is showing it's ready to lead, powered by the transformative synergy of SMX and Ybyra, which can push Brazil into a leadership position in ethical, transparent commodities trade.

The ripple effects can be transformative. By adopting SMX and Ybyra's combined offering, Brazil's industries can lead rather than follow in sustainability. Doing so secures market access in a changing regulatory environment and future-proofs Brazil's economy against evolving global demands. For a country like Brazil, where natural resources and international trade converge, SMX will be more than a partner in transparent trade-it's a catalyst for sustainable growth.

Thus, more than SMX and Ybyra stakeholders are in line to benefit- an entire country is as well.

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

Contact Information

Ken Ellis
ken@hawkpointmedia.com

SOURCE: SMX Ltd.

View the original press release on accesswire.com

FAQ

What is the value of assets under management in the SMX-Ybyra merger deal?

The merger deal involves over $1 billion in assets under management from Ybyra Capital, with the combined entity valued at over $600 million at conservative exchange rates.

Which major commodity markets will SMX's technology track in Brazil?

SMX's technology will track major Brazilian commodities including soybeans ($47.2B), raw sugar ($11.5B), frozen bovine meat ($11B), poultry meat ($8.95B), and coffee ($8.86B).

How does the current SMX market cap compare to the merger valuation?

SMX's current market cap is $4.16 million, while the merged entity with Ybyra Capital is valued at over $600 million.