It's correct. IMHO, the syntax is a bit unfortunate, but there's a simple advice, which is actually semantically correct: in the declaration class C extends SC with M1, M2, M3 implements I1, I2 { ... }, imagine parenthesis around the content of the extends clause. They will look like this: class C extends (SC with M1, M2, M3) implements I1, I2 { ... }. Which means that class C doesn't extend SC, it extends SC_with_M1_with_M2_with_M3.
Or, put another way: the class declaration has an extends clause and an implements clause, but it doesn't have a with clause. Instead, the with clause belongs inside the extends clause.
LT