SMTK Form 4: Director Receives 22,466 Stock Options at $1.16

Rhea-AI Filing Summary

Peruvemba Sriram Krishnamurthy, a director of SmartKem, Inc. (SMTK), was granted a stock option on 09/03/2025 for the right to buy 22,466 shares of Common Stock at an exercise price of $1.16 per share. The option was acquired and is exercisable under a schedule that vests 25% on the grant date with the remaining shares vesting in equal monthly installments over 36 months beginning September 3, 2025. The option expires on September 3, 2035. Following the reported transaction the reporting person directly beneficially owns 22,466 option shares. The Form 4 was signed by an attorney-in-fact on behalf of the reporting person on 09/05/2025.

Positive

• Director received a clear equity grant of 22,466 stock options, aligning the director's interests with shareholders.
• Vesting includes a 25% immediate tranche which provides immediate alignment and retention incentives through monthly vesting thereafter.

Negative

• Potential dilution from 22,466 options exists though the filing does not state total outstanding shares to assess materiality.
• Front-loaded vesting (25% immediately) increases near-term compensation value compared with fully deferred schedules.

Insights

Corporate Governance Expert

TL;DR Routine director equity award aligns management incentives but includes near-term vesting of 25% which grants immediate value.

The grant is a standard equity compensation mechanism for directors. A 25% immediate vesting upon grant provides near-term alignment of the director with shareholder value while the remaining 75% vests monthly over three years, promoting retention. The ten-year term to 09/03/2035 is customary for option grants. Documentation is complete and filed on a timely basis by an attorney-in-fact.

Compensation Analyst

TL;DR Option grant of 22,466 shares at $1.16 is a compensatory award; impact depends on company share count and outstanding equity.

The award provides potential upside if SmartKem stock appreciates above the $1.16 strike. The grant size and strike price are explicit, but materiality for investors requires total share count and existing equity dilution data which are not provided in this filing. The vesting schedule (25% immediate then monthly over 36 months) is front-loaded relative to purely multi-year cliff schedules, increasing near-term realizable compensation.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Peruvemba Sriram Krishnamurthy

(Last) (First) (Middle)

C/O SMARTKEM, MANCHESTER TECHNOLOGY CTR

HEXAGON TOWER DELAUNAYS ROAD, BLACKLEY

(Street)

MANCHESTER X0 M9 8GQ

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
SmartKem, Inc. [ SMTK ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X	Director		10% Owner
	Officer (give title below)		Other (specify below)

3. Date of Earliest Transaction (Month/Day/Year)
09/03/2025

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Stock Option (right to buy)	$1.16	09/03/2025		A		22,466		(1)	09/03/2035	Common Stock	22,466	$0	22,466	D

Explanation of Responses:

1. The option vests as follows: 25% on the date of grant with the remaining shares to vest in equal monthly installments over a period of 36 months commencing on September 3, 2025 and on the 3rd date of each month thereafter.

	/s/ Barbra Keck, attorney-in-fact for Sriram Krishnamurthy Peruvemba	09/05/2025
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What did SmartKem director Peruvemba Sriram Krishnamurthy receive on 09/03/2025?

The director was granted a stock option to purchase 22,466 shares of Common Stock at an exercise price of $1.16 per share.

When does the option vest and when does it expire?

The option vests 25% on the grant date with the remainder vesting in equal monthly installments over 36 months starting September 3, 2025. The option expires on September 3, 2035.

How many shares does the reporting person beneficially own after the transaction?

Following the reported transaction the reporting person directly beneficially owns 22,466 option shares.

Who filed and signed the Form 4 for this transaction?

The Form 4 was signed by Barbra Keck, attorney-in-fact for Sriram Krishnamurthy on 09/05/2025.

What is the exercise price of the granted options?

The exercise price of the stock option is $1.16 per share.