SMTK News & Events

Smartkem entered into a debt conversion agreement, pursuant to which certain outstanding accounts payable of Smartkem were satisfied in full through the issuance of equity securities of the Company. Under the terms of the agreement, approximately $2M of outstanding obligations owed were converted into a combination of shares of the Company's common stock and pre-funded warrants at an implied conversion price of $2.75 per share. Upon issuance of the securities, the obligations were fully discharged. The transaction resulted in a significant reduction of the Company's accounts payable, with no cash consideration paid. The Company believes the transaction strengthens its balance sheet by removing this obligation and is expected to result in a meaningful reduction in ongoing cash requirements.

Smartkem announced that Carbonium Core, with whom Smartkem recently announced a non-binding letter of intent, has received state-level support for its proposed nuclear graphite manufacturing unit. "We welcome the strong support from Tennessee leadership for Carbonium Core's planned nuclear graphite manufacturing presence in the state," said Ian Jenks, Chief Executive Officer of Smartkem. "If completed, the proposed transaction would bring together Carbonium Core's vertically integrated nuclear graphite capabilities with Smartkem's advanced materials and process innovation to help establish a secure, domestic supply chain for a material that is critical to the future of nuclear energy."

Jericho Energy Ventures (JROOF) mutually agreed with SmartKem (SMTKF) to terminate the previously announced non-binding letter of intent for a proposed all-stock business combination. There were no penalties or disputes arising from the termination. The company said, "The decision reflects Jericho's continued focus on developing a resilient and scalable energy foundation purpose-built to support its planned AI data center campus in Noble County, Oklahoma, and its commitment to prioritizing capital allocation and management resources toward infrastructure solutions that directly address long-term customer requirements. Jericho's data center campus has been assembled to meet what the Company believes are the core gating requirements for next-generation data center development, including access to two independent 345 kV transmission lines, multiple natural gas supply sources-both internal and external-and on-site energy flexibility designed to support high-availability, mission-critical operations. Recent extreme weather events further underscored the importance of this strategy. During the most recent cold-weather system, widespread curtailments and force majeure events across the region highlighted the value of diversified gas supply, transmission access, and on-site energy resilience -- capabilities that Jericho believes meaningfully differentiate its platform. In addition, Jericho continues to advance plans to utilize geological subsurface storage as part of its broader energy strategy. The Company believes this capability provides an important layer of protection against short-term supply disruptions and demand spikes, supporting uninterrupted operations during precisely the types of extreme weather scenarios recently experienced."

Smartkem announced that it has entered into a non-binding letter of intent to acquire 100% of the outstanding shares of Carbonium Core. In connection with this transaction, Smartkem has mutually agreed to terminate its previously announced LOI with Jericho Energy Ventures, with no penalties or disputes arising from the termination. The Company views this transaction as a strategic progression aligned with its long-term materials roadmap. Under the terms of the LOI, Smartkem intends to acquire all outstanding shares of Carbonium Core, Inc. in exchange for shares of Smartkem Series B Convertible Preferred Stock, subject to the execution of definitive agreements, completion of due diligence, and customary closing conditions. The LOI includes a customary exclusivity period and is non-binding with respect to the consummation of the proposed transaction.