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SMX Security Matters (NASDAQ:SMX) shares fell 20% in morning trading Tuesday after rallying 89% the prior day on news that it was cracking down on suspected illegal trading in its shares.
SMX shares opened at $1.25, hitting a high of $1.42 before sliding. The stock recently changed hands at $1.26 at approximately 11:00 a.m. ET.
The track and trace technology developer announced on Monday that it has assembled a legal task force to look into recent trading activity in its stock and take legal action against those suspected of engaging in naked short selling. SMX is also contemplating a dual listing and/or issuing a special dividend to discourage illegal trading of its shares.
SMX shares closed 89% higher on Monday at $1.59. The company went public on March 8 through a merger with SPAC Lionheart III.
SMX is the latest company to crack down on illegal short selling of in its shares, joining Genius Group (GNS), Agriforce Growing (AGRI), BriaCell Therapeutics (BCTX) (BCT:CA), Verb Technology (VERB), Ryvyl (RVYL), Helbiz (HLBZ), Hoth Therapeutics (HOTH) and SciSparc (SPRC).
To learn more about naked short selling, read Kent Thune’s “Naked Short Selling: What It Is and How It Works.”
