Smartkem Announces Pricing of $7.65 Million Offering for Public and Private Shares

Smartkem Inc. (NASDAQ: SMTK) recently disclosed its current report on Form 8-K, stating the pricing of a significant offering, as detailed in the document. On December 18, 2024, the company structured a registered direct offering and private placement with select institutional investors, aiming to issue shares of its common stock as well as various types of warrants.

The Registered Direct Offering and Concurrent Private Placement involved the sale of 1,449,997 shares of common stock, each priced at $3.00, to the RD Purchasers. Additionally, in the concurrent private placement, specific institutional investors agreed to purchase 169,784 shares of common stock, along with Pre-funded Warrants and Class D Warrants to acquire additional shares.

The agreements entered into by Smartkem included customary terms such as indemnification rights and obligations, restrictions on the issuance and sale of shares, and regulations on engaging in certain transactions post the offering period.

The gross proceeds from these offerings are earmarked at about $7.65 million before the deduction of placement agent fees and other estimated expenses. Smartkem intends to leverage these proceeds for working capital and general corporate purposes.

These transactions are anticipated to conclude around December 20, 2024, subject to the fulfillment of standard closing conditions. The Pre-funded Warrants and Class D Warrants issued have specific terms for exercising, pricing, and restrictions on ownership percentages.

Craig-Hallum Capital Group LLC served as the exclusive placement agent for these offerings, further solidifying Smartkem’s strategic financial moves in the market.

Moreover, Smartkem disclosed a press release regarding the Offerings, emphasizing its ongoing commitment to transforming the electronics industry with its advanced organic thin-film transistor technology. The company’s disruptive liquid semiconductor polymers and innovative display technologies have the potential to redefine the sector’s landscape.

This development highlights Smartkem’s proactive approach to funding and strategic investments, positioning the company for growth and continued innovation in the electronics sector.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Smartkem’s 8K filing here.

Smartkem Company Profile

SmartKem, Inc, together with its subsidiaries, develops materials and processes used to make organic thin-film (OTFT) transistors for the manufacture of flexible electronics. The company offers TRUFLEX semiconductor and dielectric inks, which uses low temperature printing processes to make transistors for the display industry.