The Albany Gazette - Verification as Infrastructure: Why SMX's $111.5 Million Equity Purchase Agreement Creates a New Category of Global Utility

Verification is becoming the newest category of global infrastructure. It's not physical, but functional. It makes every other system trustworthy. Without verification, recycling collapses into reporting uncertainty. Commodity markets lose integrity. Supply chains fracture under scrutiny. Compliance becomes theater rather than truth. Verification is the quiet force behind economic coordination, environmental integrity, and regulatory confidence.

SMX (NASDAQ:SMX) built the molecular identity system that turns verification into infrastructure. It gives materials their own digital fingerprint. But to support global adoption across gold, minerals, plastics, textiles, agriculture, and regulated supply chains, the Company needed a financial foundation capable of supporting a multi-region, multi-industry utility.

That foundation is the $111.5 million equity purchase agreement with Target Capital 1, LLC.

Capital Up-Front To Accelerate Mission

The agreement includes a $11.5 million promissory note and access to up to $100 million in capital. SMX chooses when and whether to draw from the facility. There are no forced issuances and no operational restrictions. It's capital designed for infrastructure level reliability.

That contribution is also expected to allow for no additional shares to be issued under the agreement until at least the first quarter of 2026. That's based on having money in the bank. Still, at its core, the deal is a valuable strategic asset that will enable SMX to continue advancing its global verification deployments without diluting its capital base in the coming month.

Why is verification now infrastructure? Because no sector can operate without proof. Gold markets demand an authenticated origin. Mineral supply chains require evidence that can survive geopolitical pressure. Plastics circularity programs rely on measurable recovery. Textile and industrial networks depend on authenticated materials. Regulatory bodies need data that can withstand legal and scientific scrutiny. Every system depends on verification.

The agreement also strengthens SMX's treasury by letting it direct a portion of net proceeds toward digital reserve assets. This reinforces long-term financial resilience in a way that mirrors the decentralized and data-driven nature of the Proof Economy. It can also put a floor on the company's valuation.

Advancing a Global Utility

Still, what makes the agreement transformative is how it positions SMX to function like a true global utility. Utilities operate across regions and sectors simultaneously. They support entire economies, not individual clients. They exist behind the scenes but determine the reliability of everything in front of them. SMX now holds a capital framework that supports that role.

It can expand gold identity in the Middle East while building plastics passports in Asia. It can scale textile verification in Europe while strengthening mineral authentication in the United States. It can operate across industries without losing focus or momentum.

Verification isn't a feature anymore. It's infrastructure. And with its capital structure set and timing provisions clarified, SMX is positioned to anchor the verification systems that modern economies will depend on for decades.

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 ability of SMX to satisfy the conditions under the Equity Purchase Agreement, the Promissory Note and related agreements; 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; 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.

Media Contact: [email protected]

SOURCE: SMX (Security Matters) Public Limited

View the original press release on ACCESS Newswire

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