Smartkem Successfully Raises $7.65 Million for Innovative Electronics

Smartkem Successfully Completes $7.65 Million Offering

Smartkem, a company listed on the Nasdaq under the symbol SMTK, known for its pioneering work in organic thin-film transistors (OTFTs), has announced the successful closure of a significant funding round. This recent offering has generated total gross proceeds of $7.65 million, marking a vital step in the company's ambition to transform the electronics industry.

The offering comprised both public and private securities, with Smartkem issuing an impressive 1,449,997 registered shares of its common stock, accompanied by unregistered Class D warrants allowing investors to purchase an equal number of shares. Each share was sold at a price of $3.00, ensuring an equitable investment opportunity for all participants in the offering.

In a separate segment of this funding round, Smartkem engaged various institutional and existing investors, selling 169,784 unregistered shares, alongside pre-funded warrants that entitle the holders to acquire up to 930,215 shares of common stock. The terms also included Class D warrants for up to 1,099,999 shares, with per-share prices slightly varied for the respective warrants. The Class D warrants are designed for immediate execution at $3.00 per share, while pre-funded warrants have a nominal exercise price, underscoring the company's commitment to accessible investments.

This financing will serve multiple strategic ends within Smartkem, primarily earmarked for working capital and broader corporate objectives. Craig-Hallum Capital Group LLC played the role of exclusive placement agent during this significant offering, demonstrating confidence in Smartkem's innovative trajectory.

Looking Ahead: The Future of Electronics

Smartkem is at the forefront of advancing display technologies, leveraging its patented TRUFLEX® liquid semiconductor polymers. These materials are pivotal in developing cutting-edge transistors that can be integrated into next-generation microLED displays, which are set to revolutionize the market due to their superior efficiency and performance.

The company operates from a robust research and development facility in Manchester, UK, which underpins its dedication to innovation. Additionally, its collaboration with the Centre for Process Innovation in Sedgefield, UK, allows Smartkem to prototype its advancements effectively. With an established field application office in Taiwan, Smartkem is strategically positioned to cater to a global clientele.

Smartkem has built a formidable intellectual property portfolio, holding 138 granted patents across 18 families, along with 16 pending applications and 40 codified trade secrets. This solid foundation not only reinforces the company's market positioning but also highlights its commitment to continuous innovation and technological advancement in the field.

Transparency in Offerings

Smartkem's latest funding initiatives are governed by strict regulatory compliance, with shares registered under its effective shelf registration statement as per SEC regulations. The company is making a transparent commitment to its investors by ensuring that shares, alongside those obtainable through exercised warrants, are eligible for resale in due course of time.

This press release serves to inform potential investors that this funding round does not constitute a solicitation to buy Smartkem securities but rather aims to inform stakeholders of the company's strategic financial maneuvers.

In conclusion, as Smartkem moves forward with this newly acquired capital, it is keen to push the boundaries of what's possible within the electronics sector using its disruptive technologies. The future indeed looks bright for Smartkem and its endeavors in displaying innovation that aligns with the needs of a rapidly evolving technological landscape.