SmartKem (SMTK) reverse stock split now in effect
Rhea-AI Filing Summary
SmartKem, Inc. (SMTK) amended its Certificate of Incorporation to implement a 1-for-50 reverse stock split of its issued and outstanding common stock. The amendment became effective at 5:00 p.m. Eastern Time on August 20, 2026.
At the effective time, every fifty shares of common stock were converted into one share. No fractional shares will be issued; any fractional share will be rounded up to the next whole share. The par value of the common stock remains $0.0001 per share, and the authorized number of shares of common stock is unchanged. Outstanding stock options, warrants, and the number of shares reserved under the equity incentive plan will all be adjusted proportionately.
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Filing Explained
The completed 1-for-50 reverse split reduces the number of issued shares while leaving the authorized share count unchanged. The split itself does not change company value, but the unchanged authorization represents more potential shares relative to the reduced issued share base.
8-K Event Classification
2 items: 5.03, 9.01
2 items
Item 5.03
Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year
Governance
The company amended its charter documents, bylaws, or changed its fiscal year.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Reverse stock split ratio: 1-for-50
Effective time of reverse stock split: 5:00 p.m. Eastern Time
Par value per share: $0.0001 per share
+1 more
4 metrics
Reverse stock split ratio
1-for-50
Every fifty shares of issued and outstanding common stock converted into one share at the Effective Time
Effective time of reverse stock split
5:00 p.m. Eastern Time
Effective Time on August 20, 2026 for the reverse stock split
Par value per share
$0.0001 per share
Par value of SmartKem common stock, unchanged by the reverse stock split
Reverse stock split effective date
August 20, 2026
Date the Certificate of Amendment became effective
Key Terms
Reverse Stock Split, Certificate of Amendment, par value, equity incentive plan, +1 more
5 terms
Reverse Stock Split financial
"to effectuate a reverse stock split (the “Reverse Stock Split”) of its issued"
A reverse stock split reduces a company's number of outstanding shares while raising the price per share proportionally, so the total value of each investor's holding is unchanged; a 1-for-10 split turns 100 shares worth $1 each into 10 shares worth $10 each. Companies often do this to regain compliance with an exchange's minimum price rule or to attract investors who avoid very low-priced stocks.
Certificate of Amendment regulatory
"filed a Certificate of Amendment to its Certificate of Incorporation"
A certificate of amendment is an official filing that updates a company’s founding documents—its legal “rulebook” that sets share structure, voting rules, name and basic purpose. Think of it like changing the blueprint of a building: small changes are paperwork, big ones can alter who owns how much and who controls decisions. Investors watch these filings because they can affect share counts, voting power, dilution and company value.
par value financial
"common stock, par value $0.0001 per share (“Common Stock”)"
Par value is the fixed amount printed on a bond or stock that represents its original value when issued. It’s like the face value of a coin or bill—what the issuer promises to pay back or the starting price of a stock—though it often doesn’t change with market prices. It matters because it helps determine certain financial details, like how much the company will pay back at maturity.
equity incentive plan financial
"number of shares authorized and reserved for issuance pursuant to the Company’s equity incentive plan"
An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.
exchange agent financial
"Equiniti Trust Company, LLC acted as the exchange agent for the Reverse Stock Split"
An exchange agent is a third party appointed to handle the practical steps when securities are being swapped, such as during mergers, tender offers, or restructurings. Think of it as a trusted post office that collects old shares, verifies ownership, completes required paperwork and regulatory filings, and delivers the new shares or cash to investors; its efficiency and accuracy affect how quickly and safely investors receive the value they're owed.
FAQ
What reverse stock split did SmartKem, Inc. (SMTK) implement?
SmartKem, Inc. implemented a 1-for-50 reverse stock split of its issued and outstanding common stock, meaning every fifty shares were converted into one share at the effective time.
When did the SMTK reverse stock split become effective?
The reverse stock split for SMTK became effective at 5:00 p.m. Eastern Time on August 20, 2026, when the Certificate of Amendment filed in Delaware took effect.
Who is the exchange agent for the SMTK reverse stock split?
Equiniti Trust Company, LLC is acting as the exchange agent for SmartKem’s 1-for-50 reverse stock split.
AI-generated analysis. How Rhea-AI works. Not financial advice.
