SMX Shares Tank After Company Announces 1-For-4.88 Reverse Stock Split

• The reverse split will reduce the number of outstanding shares to around two million from roughly 10 million.
• This marks SMX’s sixth reverse stock split since January 2025.
• SMX recently extended its capital runway into 2028.

Shares of SMX (Security Matters) tumbled more than 17% on Thursday after the company announced that its board approved a 1-for-4.88 reverse stock split, which will become effective on February 17.

The company said that the reverse split will reduce the number of outstanding shares to around two million from roughly 10 million.  

This marks SMX’s sixth reverse stock split since January 2025, with the last one being a one-for-eight split that took effect on Nov. 18, 2025.

Extension Of Capital Runway

Last Friday, SMX shares surged 90% after the company extended its capital runway into 2028. An amendment to its equity line of credit agreement increased the credit limit to $250 million from $116 million, adding roughly 22 months of funding. Earlier this year, SMX fully converted $20.6 million in convertible notes issued in December 2025 into roughly 1.23 million ordinary shares.

The company has been in the spotlight since late November last year after it unveiled a patented molecular-marking technology to track gold at the DMCC Precious Metals Conference in Dubai. The stock has seen significant swings since then, reaching as high as $490 in December. It is currently trading near $13.

How Did Stocktwits Users React?

Despite the sharp intraday fall, retail sentiment on Stocktwits remained ‘extremely bullish’ amid ‘extremely high’ message volumes.

One user expects the stock to climb higher ahead of the effective date of the reverse split.

Another user said they would re-enter after the effective date.

SMX shares have fallen around 29% so far this year.

Read also: JTAI Stock Sees Sharp Swing – What’s The Latest On The flyExclusive Agreement?

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