SMX (Security Matters) Public Limited Company announced that it has entered into a Securities Purchase Agreement that it has issued and sold to an institutional investor a promissory note with a fixed conversion price of $1.6378 for gross proceeds of approximately $2.5 million, before deducting fees and other offering expenses payable by the company to their service providers on September 5, 2023. The note, dated as of the effective date, is in the principal amount of $4,290,000. The actual amount loaned by the Investor pursuant to the note is $2,574,000 after a 40% original issue discount.

The maturity date of the Note is the 12-month anniversary of the effective date, and is the date upon which the principal amount, as well as any accrued and unpaid interest and other fees, shall be due and payable. Interest accrues in the amount of 12% per year from the effective date and shall be payable on the maturity date or upon acceleration or by prepayment or otherwise. The company will issue securities pursuant to exemption provided under Regulation D.