SMX Announces Effective Date of Reverse Stock Split
Rhea-AI Summary
Security Matters (NASDAQ:SMX) announced a 20:1 reverse stock split effective for trading on an adjusted basis beginning May 11, 2026. The company will change its CUSIP to G8267K190 and ISIN to IE0008D7EWV5. Outstanding shares will fall from approximately 12 million to about 614,000.
Options, warrants (including SMXWW) and other convertibles will be proportionately adjusted; no fractional shares will be issued and aggregated fractional entitlements may be sold. Record holders with certificates will receive exchange instructions from Continental Stock Transfer & Trust Company; book‑entry holders will see changes on or after May 12, 2026.
AI-generated analysis. Not financial advice.
Positive
- Reverse stock split fixed at 20:1
- Outstanding shares reduced from ~12,000,000 to ~614,000
- New CUSIP G8267K190 and ISIN IE0008D7EWV5
- Options, warrants and convertibles will be proportionately adjusted
Negative
- No fractional shares issued; aggregated fractional entitlements may be sold for cash
News Market Reaction – SMX
On the day this news was published, SMX declined 18.95%, reflecting a significant negative market reaction. Argus tracked a peak move of +31.9% during that session. Argus tracked a trough of -23.6% from its starting point during tracking. Our momentum scanner triggered 27 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $11.17M at that time. Trading volume was very high at 3.8x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
SMX was up 31.9% with elevated volume, while only one peer in momentum (LICN) was also up (~16.27%). Other flagged peers, including PMAX (~-15.58%) and WFCF (~-20.02%), were down, indicating a stock-specific move rather than a sector-wide shift.
Previous Stock split Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Reverse stock split | Negative | -16.1% | Announced 4.8828125:1 reverse split, cutting shares from ~10M to ~2M. |
| Nov 14 | Reverse stock split | Negative | -17.3% | Announced 8:1 reverse split, reducing shares from 8,404,581 to 1,050,572. |
| Oct 21 | Reverse stock split | Negative | -32.8% | Announced 10.89958:1 reverse split, shrinking float from ~15.5M to ~1M. |
| Aug 05 | Reverse stock split | Negative | -35.4% | Announced 7:1 reverse split, cutting shares from ~9M to ~1M. |
| Jun 12 | Reverse stock split | Negative | -7.1% | Announced 4.1:1 reverse split, reducing shares from ~4M to ~1M. |
Prior 5 reverse stock split announcements saw consistent negative next-day moves, averaging -21.73%, suggesting the market has historically reacted poorly to these actions.
Over the past year, SMX has repeatedly implemented reverse stock splits, with ratios ranging from 4.1:1 to 10.89958:1, each reducing outstanding shares to around 1–2 million. These events followed shareholder approval allowing the Board to consolidate shares and were accompanied by proportionate warrant and convertible adjustments. Each stock-split announcement triggered negative price reactions between -7.14% and -35.36%. Today’s new 20:1 consolidation continues that pattern of structural share reductions.
Historical Comparison
In the past 12 months, SMX issued 5 reverse split announcements averaging a -21.73% next-day move. Pre-announcement, shares were up 31.9%, making this setup atypical versus prior stock-split reactions.
SMX has repeatedly consolidated its equity, moving from reverse-split ratios like 4.1:1, 7:1, and 10.89958:1 to the newly announced 20:1 action, each substantially reducing outstanding ordinary shares and proportionately adjusting warrants and convertibles.
Regulatory & Risk Context
An effective Form F-3 shelf dated March 25, 2026 permits SMX to offer up to $250,000,000 of securities over time, with at least two 424B3 prospectus supplements already filed, indicating an established framework for future capital raises.
Market Pulse Summary
The stock dropped -18.9% in the session following this news. A negative reaction despite this being a mechanical reverse split would fit SMX’s history. Prior stock-split announcements averaged about -21.73% moves, with several declines exceeding -30%. The presence of an effective $250,000,000 Form F-3 shelf and sizable registered resale blocks underscores dilution and financing overhangs, which have frequently coincided with pressure on the shares after past consolidation events.
Key Terms
reverse stock split financial
cusip regulatory
isin regulatory
warrants financial
convertible securities financial
exchange agent financial
book-entry financial
AI-generated analysis. Not financial advice.
NEW YORK, NY / ACCESS Newswire / May 7, 2026 / SMX (Security Matters) Public Limited Company (NASDAQ:SMX; SMXWW) (the "Company"), today announced that the reverse stock split of the Company's ordinary shares will begin trading on an adjusted basis giving effect to the reverse stock split on May 11, 2026 under the existing ticker symbol "SMX". The new CUSIP number of the Company's ordinary shares will be G8267K190 and the new ISIN code will be IE0008D7EWV5.
On May 2, 2025, the Company's Shareholders approved a proposal to amend the Company's constitution to allow the Company's Board of Director's to consolidate and/or divide all or any of the Company's classes of shares as the Board of Directors sees fit. As such, Shareholder approval was not required to effect the reverse stock split.
The Company's Board of Directors' fixed the split ratio at 20:1, every 20 ordinary shares of the Company with a nominal value of
Outstanding Company options, warrants and other applicable convertible securities, including the Company's warrants listed on the Nasdaq Capital Market under the symbol SMXWW which will retain its existing CUSIP number, will be proportionately adjusted in accordance with their respective terms. No fractional shares will be issued in connection with the reverse stock split. Instead, the Company will aggregate the fractional entitlements of shareholders who otherwise would be entitled to receive fractional shares because they hold a number of ordinary shares not evenly divisible by 20 ordinary shares pursuant to the reverse stock split or they hold less than the number of ordinary shares which should be consolidated into one ordinary share pursuant to the reverse stock split and, to the extent possible, sell such aggregated fractional ordinary shares on the basis of prevailing market prices at such time.
Continental Stock Transfer & Trust Company is acting as exchange agent for the reverse stock split and will send instructions to any shareholders of record who hold stock certificates regarding the exchange of certificates. Shareholders with shares held in book-entry form or through a bank, broker, or other nominee are not required to take any action and will see the impact of the reverse stock split reflected in their accounts on or after May 12, 2026. Such beneficial holders may contact their bank, broker, or nominee for more information. Continental Stock Transfer may be reached for questions at (212) 509-4000.
-Ends-
For further information contact:
SMX GENERAL ENQUIRIES
E: info@securitymattersltd.com
About SMX
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, the Company's ability to regain compliance with applicable Nasdaq standards or comply with the continued listing standards of Nasdaq even if the Company regains compliance. 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.
SOURCE: SMX (Security Matters)
View the original press release on ACCESS Newswire