Smartkem Welcomes State-Level Support for Carbonium Core’s Proposed Nuclear Graphite Manufacturing Unit
Rhea-AI Summary
Smartkem (Nasdaq: SMTK) announced a proposed transaction with Carbonium Core to establish a U.S. nuclear‑grade graphite manufacturing unit in Tennessee, supported at the state level. The plan would combine Smartkem’s materials and process expertise with Carbonium Core’s vertically integrated graphite platform.
The initiative targets a domestic supply chain for reactor‑grade graphite for SMRs and Generation IV reactors, aims to leverage Tennessee’s industrial base and workforce, and is subject to due diligence, definitive agreements, required approvals, and customary closing conditions.
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News Market Reaction
On the day this news was published, SMTK declined 16.82%, reflecting a significant negative market reaction. Argus tracked a peak move of +5.5% during that session. Argus tracked a trough of -26.2% from its starting point during tracking. Our momentum scanner triggered 12 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $1M from the company's valuation, bringing the market cap to $5M at that time. Trading volume was above average at 1.9x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Market Reality Check
Peers on Argus
While SMTK shows a -13.22% move pre-announcement, key peers are mixed to positive: AXTI up 14.46%, ASYS up 6.01%, INTT up 2.40%, TRT up 1.25%, and only ATOM down 3.15%. Momentum scans flag AXTI moving up, reinforcing this as stock-specific rather than a sector-wide move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 02 | Acquisition LOI | Positive | -13.2% | Non-binding LOI to acquire Carbonium Core for $120M in preferred stock. |
| Jan 06 | POC agreement | Positive | +6.6% | 12-month paid proof-of-concept deal for MicroLED wearable devices. |
| Dec 10 | Biometrics tech | Positive | +10.1% | World-first all-organic-transistor biometric sensor with IEEE conference exposure. |
| Dec 01 | MicroLED showcase | Positive | +5.6% | Presentation of MiP4 MicroLED backlight technology at IDW Japan 2025. |
| Nov 20 | Merger LOI | Positive | -14.7% | Extended LOI for proposed all-stock merger to form AI infrastructure company. |
Recent news has often triggered double-digit swings, with positive technology or partnership updates sometimes rallying the stock (+6.56%, +10.13%, +5.63%) but strategic transaction announcements also coinciding with sharp selloffs (-13.22%, -14.65%), suggesting mixed investor reception to deal-related headlines.
Over the last few months, SMTK has issued several strategic updates. On Nov 20, 2025, it extended an LOI for an all-stock merger with Jericho, which saw a -14.65% reaction. Subsequent technology-focused releases in December on MicroLED and biometric sensors drew positive double-digit moves. On Feb 2, 2026, SMTK announced a non-binding LOI to acquire Carbonium Core for $120,000,000 in preferred stock, which coincided with a -13.22% move. Today’s state-support news relates directly to that Carbonium Core LOI and the evolving transaction narrative.
Market Pulse Summary
The stock dropped -16.8% in the session following this news. A negative reaction despite supportive news fits SMTK’s pattern of selling off on deal-related announcements, as seen with the -13.22% move on the Carbonium Core LOI and the -14.65% move on the Jericho merger LOI. The company’s recent registered direct financing and earlier secured notes underscore balance-sheet pressure, so investors may focus more on dilution and execution risk than on long-term strategic positioning in nuclear graphite.
Key Terms
nuclear graphite technical
nuclear-grade graphite technical
small modular reactors (SMRs) technical
Generation IV technical
AI-generated analysis. Not financial advice.
Proposed transaction with Carbonium Core, Inc. to establish domestic nuclear-grade graphite manufacturing in Tennessee, USA
*for illustrative purposes only
MANCHESTER, United Kingdom, Feb. 03, 2026 (GLOBE NEWSWIRE) -- Smartkem, Inc. (Nasdaq: SMTK), (“Smartkem” or the “Company”), a leader in advanced materials, today announced that Carbonium Core, Inc. (“Carbonium Core”), with whom Smartkem recently announced a non-binding letter of intent (“LOI”), has received state-level support for its proposed nuclear graphite manufacturing unit. Carbonium Core is a U.S.-based advanced materials company focused on the domestic production of nuclear graphite.
State Senator Jessie Seal, Vice-Chairman of the Tennessee Senate Energy, Agriculture and Natural Resources Committee welcomed Carbonium Core’s planned nuclear graphite manufacturing presence in Tennessee’s Cumberland Gap region and cited its potential to drive job creation and economic growth.
“This upcoming manufacturing unit is a major win for our local community,” Senator Seal said. “This development will bring many quality jobs, outstanding economic growth, and new opportunities for our communities. I would like to offer my full support to Carbonium Core, Inc. and I look forward to working closely with them to ensure everyone’s long-term success.”
If completed, the proposed transaction would combine Smartkem’s advanced materials and process expertise with Carbonium Core’s vertically integrated platform for producing nuclear graphite, a critical material used in next-generation nuclear reactor technologies, including small modular reactors (SMRs) and Generation IV designs.
Carbonium Core is focused on establishing a fully domestic supply chain for nuclear graphite, encompassing purification, graphitization, shaping, and finishing. This end-to-end approach is intended to ensure consistent quality, performance, and security of supply, while reducing reliance on overseas sources of reactor-grade graphite.
“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.”
Subject to completion, the transaction is expected to support the development of a U.S.-based nuclear graphite manufacturing footprint in Tennessee, leveraging the state’s industrial infrastructure, skilled workforce, and proximity to advanced energy and manufacturing supply chains. The project is designed to support U.S. energy security objectives through domestic production of nuclear graphite using environmentally responsible processing methods.
Completion of the proposed transaction is subject to satisfactory due diligence, execution of definitive agreements, receipt of required approvals, and other customary closing conditions. There can be no assurance that any definitive agreements will be negotiated or executed, that the proposed transaction will be consummated on the terms described herein, or at all, or as to the timing or final terms of any transaction. Smartkem will provide further updates as appropriate, in accordance with applicable disclosure requirements.
About Smartkem
Smartkem is seeking to change the world of electronics with a new class of transistors developed using its proprietary advanced semiconductor materials. Our TRUFLEX® semiconductor polymers enable low temperature printing processes that are compatible with existing manufacturing infrastructure to deliver low-cost, high-performance electronics. Our semiconductor platform can be used in a range of technologies including MicroLED, LCD and AMOLED, as well as in applications in advanced computer and AI chip packaging, sensors, and logic.
Smartkem designs and develops its materials at its research and development facility in Manchester, UK and operates a field application office in Hsinchu, Taiwan, close to collaboration partner, The Industrial Technology Research Institute (ITRI), where it provides prototyping services. Smartkem is developing a commercial-scale production process and Electronic Design Automation (EDA) tools to demonstrate the commercial viability of manufacturing a new generation of displays using its materials.
The company has an extensive IP portfolio including 141 granted patents across 17 patent families, 15 pending patents and 40 codified trade secrets.
For more information, visit the Smartkem website or follow on LinkedIn.
About Carbonium Core, Inc.
Carbonium Core, Inc. is a U.S.-based advanced materials company focused on producing nuclear-grade graphite for 4th-generation reactors. Its mission is simple – to secure a resilient, sustainable, and competitive domestic supply of this critical material through science, innovation, and responsible sourcing.
Carbonium Core, Inc. combines: cutting-edge materials engineering, exclusive purification technology, vertically integrated supply chain – from mine to reactor, and sustainable and scalable production – reducing waste, cost, and carbon footprint.
For more information, visit the Carbonium Core, Inc. website.
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements, including, among other things, statements regarding the anticipated timing, proposed terms and the Company’s ability to close the proposed transaction with Carbonium Core; the anticipated benefits of the proposed transaction with Carbonium Core; Carbonium Core’s planned nuclear graphite manufacturing presence in Tennessee’s Cumberland Gap region and the facility’s potential to drive job creation and economic growth; Smartkem Inc.’s market position and market opportunity, expectations and plans as to its product development, manufacturing and sales, and relations with its partners and investors. These statements are not historical facts but rather are based on Smartkem, Inc.'s current expectations, estimates, and projections regarding its business, operations and other similar or related factors. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or elated expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including uncertainties inherent in the negotiation of business transactions, the ability to satisfy closing conditions as well as other risks described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available, except as required by law.
Contacts
Selena Kirkwood
Head of Communications for Smartkem
s.kirkwood@smartkem.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9831ee03-d1a5-4f2e-8478-382d336be55b
FAQ
What is the proposed Smartkem (SMTK) transaction with Carbonium Core announced on February 3, 2026?
How does the proposed SMTK–Carbonium Core plan affect U.S. nuclear graphite supply chains?
What support did Tennessee provide for Carbonium Core’s planned manufacturing unit mentioned by Smartkem (SMTK)?
What conditions must be met before Smartkem’s (SMTK) proposed transaction with Carbonium Core closes?
Where would Carbonium Core’s proposed nuclear graphite manufacturing unit be located under the SMTK proposal?
What applications would domestically produced nuclear graphite serve under the Smartkem (SMTK) plan?
