SMX Public Limited Company has successfully acquired an additional 7.5% stake in TrueGold Consortium Pty Ltd., elevating its total ownership to 51.9% and thus obtaining majority control. This strategic move resulted in a gain of $22,164, recognized in SMX's statement of comprehensive loss, and was facilitated by a revaluation of SMX's prior investment in TrueGold. The fair value of TrueGold was assessed using a discounted cash flow method. The acquisition's total cost included the forgiveness of outstanding payables from TrueGold to SMX, totaling approximately $307. The goodwill generated from the acquisition, amounting to $32,957, is expected to yield benefits from the synergies of the combined operations of SMX and TrueGold. TrueGold's identifiable net assets were valued at $10,340, with non-controlling interests...Show More

SMX Public Limited Company has successfully acquired an additional 7.5% stake in TrueGold Consortium Pty Ltd., elevating its total ownership to 51.9% and thus obtaining majority control. This strategic move resulted in a gain of $22,164, recognized in SMX's statement of comprehensive loss, and was facilitated by a revaluation of SMX's prior investment in TrueGold. The fair value of TrueGold was assessed using a discounted cash flow method. The acquisition's total cost included the forgiveness of outstanding payables from TrueGold to SMX, totaling approximately $307. The goodwill generated from the acquisition, amounting to $32,957, is expected to yield benefits from the synergies of the combined operations of SMX and TrueGold. TrueGold's identifiable net assets were valued at $10,340, with non-controlling interests at $20,826. Since the acquisition, TrueGold has contributed $155 to SMX's consolidated net loss, which would have been $692 had the combination occurred at the beginning of 2023. Despite operating losses and negative cash flows, SMX is planning further capital raising efforts, including a $30 million stock purchase agreement with an institutional investor, a convertible note of $500 to $1,000, and second-round funding of about $5,800 post-balance sheet date. SMX, operating under Irish law and adhering to NASDAQ's corporate governance standards for foreign private issuers, aims to enhance supply chain transparency across various industries, promoting a shift towards a sustainable circular economy.