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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): June 22, 2026
SmartKem, Inc.
(Exact name of registrant as specified in its charter)
| Delaware |
001-42115 |
85-1083654 |
|
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
3 Germay Drive, Unit 4 #1029
Wilmington, DE, 19804
(Address of principal executive offices, including
zip code)
N/A
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to
Section 12(b) of the Act:
| Title of each class |
|
Trading Symbol(s) |
|
Name of exchange on which registered |
| Common Stock, par value $0.0001 per share |
|
SMTK |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b - 2 of the Securities Exchange
Act of 1934 (§240.12b - 2 of this chapter).
Emerging growth
company x
If an emerging
growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 1.01. Entry into a
Material Definitive Agreement
On June 22, 2026, SmartKem, Inc.
(the “Company”) funded an additional bridge loan to Ferrox Critical Minerals, a British Virgin Islands company (“Ferrox”),
in the original principal amount of $2,500,000.00, which loan was evidenced by that certain Convertible Promissory Note (the “Note”)
issued by Ferrox to the Company. The obligations evidenced by the Note shall accrued interest at a rate of 5.0% per annum and will mature
on December 31, 2026. Pursuant to the terms of the Note, the Company was paid an originate fee of $200,000.00. Upon an event of default
(as defined in the Note), the Company will be paid a default management fee of $4,500.00 per day and the interest rate shall increase
to 15% per annum.
The obligations under the Note
are convertible into ordinary shares of Ferrox (“Ordinary Shares”) at any time by the Company at a price per Ordinary Share
equal to the lower (i) the fair market value of an Ordinary Share at the time of conversion as determined by an independent appraisal
firm or (ii) the value of an Ordinary Share determined based on a total equity value of Ferrox of $80,000,000, on a fully-diluted basis.
The conversion price is subject to customary adjustments for stock dividends, stock splits and stock combinations.
The Note also contains customary
negative covenants restricting Ferrox’s ability to, among other things, redeem any of its equity securities, incur or repay indebtedness,
make or declare any dividends or distributions on its equity securities, sell, lease or otherwise dispose of its assets, amend its charter
or enter into any transactions with its affiliates.
The Note also contains a right
of first refusal in favor of the Company on any (i) direct or indirect transfer, sale, lease, license or encumbrance of all or any portion
of the capital stock or assets of Ferrox or any of its subsidiaries (other than (x) inventory to be sold in the ordinary course of business
consistent with past practice and (y) sales of immaterial or obsolete assets), (ii) any merger, consolidation or other business combination
relating to Ferrox or any of its subsidiaries to the extent such transaction constitutes a change of control, (iii) any recapitalization,
reorganization or any other extraordinary business transaction involving or otherwise relating to Ferrox or any of its subsidiaries to
the extent such transaction constitutes a change of control or (iv) equity issuance or debt incurrence involving Ferrox or any of its
subsidiaries (each, a “Fundamental Transaction”).
Ferrox has also granted the Company
exclusivity with respect to any Fundamental Transaction through December 31, 2026.
The Note is additional to the
previously announced convertible promissory note issued by Ferrox to the Company on April 23, 2026.
The foregoing descriptions of
the terms of the Note do not purport to be complete and are subject to, and qualified in their entirety by reference to, the Note which
is annexed hereto as Exhibit 4.1 and is incorporated herein by reference.
Item 3.02 Unregistered Sales of Equity Securities.
Private Placement
Additional Closing under Securities Purchase
Agreement
As previously announced, on March 30, 2026, the
Company, entered into a Securities Purchase Agreement (the "Preferred Stock Purchase Agreement") with certain institutional
investors (collectively, the "Buyers"). Pursuant to the Preferred Stock Purchase Agreement, up to 21,411.5 shares of the Company’s
Series A convertible preferred stock, par value $0.001 per share (the “Series A Preferred Stock”) and accompanying warrants
(“Warrants”) to purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”)
may be purchased for an aggregate purchase price of up to $17,129,200.00 million in one or more closings.
As previously announced, on March 30, 2026 at
the initial closing, pursuant to the Preferred Stock Purchase Agreement, the Company issued and sold, and certain Buyers purchased, in
a private placement: (i) 11,411.5 shares of the Series A Preferred Stock, with a stated value of $1,000 per share, convertible into shares
of Common Stock and (ii) warrants to purchase up to 23,251,960 shares of Common Stock (the "Warrants").
Pursuant to the Preferred Stock Purchase Agreement,
the Buyers have the right, severally, subject to the satisfaction of certain conditions, to require the Company to participate in one
or more additional closings for the purchase of up to an aggregate of 10,000 additional shares of Series A Preferred Stock and Warrants
(each such transaction, an “Additional Closing”).
On June 22, 2026, at an Additional Closing pursuant
to the Preferred Stock Purchase Agreement, the Company issued and sold, and certain Buyers purchased, in a private placement: 5,000 shares
of the Series A Preferred Stock and 10,753,615 Warrants to purchase shares of Common Stock for aggregate proceeds of approximately $4.0
million, paid in cash.
All such securities will not be registered under
the Securities Act in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of
Regulation D promulgated thereunder, or under any state securities laws. The Company relied on this exemption from registration in entering
into the Securities Purchase Agreement and the Company will rely upon this exemption from registration in issuing such securities based
in part on representations made by the investors in the Securities Purchase Agreement. The securities may not be offered or sold in the
United States absent registration or an applicable exemption from registration requirements. Neither this Current Report on Form 8-K,
nor the exhibits attached hereto, is an offer to sell or the solicitation of an offer to buy the securities described herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibits |
Description |
| 4.1 |
Convertible Promissory Note issued by Ferrox Critical Minerals to SmartKem, Inc. on June 22, 2026 |
| 104 |
Cover Page Interactive Data File (Embedded within the Inline XBRL document) |
Signature
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
SMARTKEM, INC. |
| |
|
|
| Dated: June 26, 2026 |
By: |
/s/ Barbra C. Keck |
| |
|
Barbra C. Keck |
| |
|
Chief Financial Officer |
