Security Matters is poised to delist from the ASX and merge with a NASDAQ-listed SPAC.
Small cap anti-counterfeit technology company Security Matters is poised to delist from the ASX and merge with a SPAC on the Nasdaq in a deal that will increase its value by more than 15 times.
“We are on the precipice of commercialising our technology across a number of large global markets – from gold to food and wine, to fashion, rubber and plastics – and the valuation reflects that.”More SPAC investors cashing out early Under the terms of a SPAC, investors in the shell company can cash out their shares if they do not want to become shareholders of the new entity.
, as investors became more risk-averse and rotated away from tech. CBInsights figures reveal that the average redemption rate for a SPAC merger reached 80 per cent in the first few months of the year, up from about 50 per cent in 2021 and only 20 per cent in 2020. Despite the challenging conditions for SPACs this year, Mr Alon was confident that SMX would receive a favourable reception on the US exchange.
If there are no redemptions, the company will have about $US116 million in cash after fees and expenses at the completion of the deal. This will be used to finance its operations and invest in strategic growth opportunities.
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