NEW
YORK, April 5, 2023 /PRNewswire/ -- In
its continuing efforts to establish a sound foundation for its
recent entry into the US public markets, and to help prevent
illegal "naked" short selling and other abusive trading
practices, SMX (Security Matters) plc
(NASDAQ:SMX; SMXWW) is
providing this informational release and recommended guidance to
its valued shareholders.
SMX management believes that all holders of its ordinary shares
should hold their SMX shares in a TYPE 1 CASH ACCOUNT. Many market
participants unknowingly keep fully paid shares like SMX's ordinary
shares in a Type 2 Margin Account along with other securities they
own on margin.
This creates an opening for short sellers to borrow SMX shares
to short the Company, which could be resulting in downward pressure
on SMX shares. SMX has been advised that according to every
brokerage firm's customer agreement, the broker can lend out ANY
shares in a shareholder's account as collateral for extending a
margin loan. Even though an SMX shareholder may not own SMX shares
on margin, the brokerage firm can legally lend any position in a
shareholder's Type 2 Margin Account.
To prevent this, retail shareholders can contact their brokerage
firm in writing and instruct them to hold their SMX ordinary shares
in TYPE 1 CASH ACCOUNTS ONLY. Suggested instructions to a
shareholder's broker may include: "Please be advised that I wish to
hold my SMX shares in a Type 1 cash account. Please also add a memo
note indicating "Do Not Lend." Please confirm you are in receipt of
this communication and my instructions have been carried out."
Senior management of SMX are instructing their brokers to adhere
to this guidance, and recommend that the Company's insiders and
public shareholders do the same. With the help of its valued
shareholders, SMX is striving to be best positioned to deliver
long-term shareholder value.
About SMX
As global businesses faces 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; 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 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.
Follow us through our social channel @secmattersltd
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SOURCE SMX