Smartkem Announces Successful Closure of $7.65 Million Offering in Electronics Innovation
Smartkem, a pioneering company dedicated to revolutionizing the electronics sector through its innovative organic thin-film transistors (OTFTs), has announced the successful conclusion of a simultaneous public and private offering that garnered a total gross proceeds of $7.65 million. This funding round is pivotal for Smartkem as it continues to push the boundaries of electronic devices and display technology.
On December 23, 2024, Smartkem informed investors that it had issued approximately 1,449,997 common shares alongside non-transferable Class D warrants. Each warrant gives investors the right to acquire an equal number of common shares at a price of $3.00 each. Moreover, this transaction ensured that investors received one Class D warrant for each common share they purchased during the public offering. This strategic capital raise reflects the strong interest in Smartkem's technology and its potential to disrupt the market.
In addition to the public offering, Smartkem executed a distinct and simultaneous private placement. This involved the sale of 169,784 unregistered common shares and non-registered pre-funded warrants to various institutional investors, which included existing stakeholders in the company. The pricing structure for this segment allowed for shares to sell at $3.00 each, while pre-funded warrants were priced at $2.9999 each, permitting the acquisition of up to approximately 930,215 common shares.
This influx of funds is crucial as Smartkem plans to utilize the net proceeds for working capital and general operational needs, thereby strengthening its financial foundation. Craig-Hallum Capital Group LLC acted as the exclusive placement agent for this successful offering, displaying its commitment to fostering innovations in the electronics landscape.
Further, the company confirmed that it entered into a registration rights agreement, thereby ensuring the issuance of shares from the private placement will be registered for resale. This will provide liquidity for the investors involved, enhancing their confidence in Smartkem’s future prospects. The registration will be executed by the 10th day following the filing of the company’s annual report for the fiscal year ending December 31, 2024, or by April 25, 2025, whichever comes first.
The completion of this offering demonstrates Smartkem’s proactive approach in the highly competitive field of electronics. As the company continues to innovate with its patented TRUFLEX® liquid semiconductor polymers, it aims to produce a new kind of transistor compatible with various display technologies, including next-generation microLED screens.
Smartkem is strategically positioned for growth, backed by a robust research and development hub in Manchester, UK, and a dedicated application lab in Taiwan. The company holds a diverse intellectual property portfolio, boasting 138 issued patents across 18 families, supplemented by 16 pending patents and 40 trade secrets. This solid foundation underlines its commitment to innovation in display technology.
The future for Smartkem looks promising. By leveraging the fresh influx of capital, the company is set to accelerate its roadmap towards delivering affordable, high-performance displays that challenge traditional technologies. This funding milestone further solidifies the company’s position within the rapidly evolving electronics industry and enhances its capacity to meet emerging market demands.
As Smartkem continues to pursue its vision of transforming the electronics sector, this significant capital raise is a clear indication of investor confidence in its dynamic potential, showcasing the pivotal role that organic thin-film transistors could play in the future of electronic displays. Investors and industry stakeholders are optimistic about what this new funding will enable Smartkem to achieve in the ever-evolving landscape of electronics.
On December 23, 2024, Smartkem informed investors that it had issued approximately 1,449,997 common shares alongside non-transferable Class D warrants. Each warrant gives investors the right to acquire an equal number of common shares at a price of $3.00 each. Moreover, this transaction ensured that investors received one Class D warrant for each common share they purchased during the public offering. This strategic capital raise reflects the strong interest in Smartkem's technology and its potential to disrupt the market.
In addition to the public offering, Smartkem executed a distinct and simultaneous private placement. This involved the sale of 169,784 unregistered common shares and non-registered pre-funded warrants to various institutional investors, which included existing stakeholders in the company. The pricing structure for this segment allowed for shares to sell at $3.00 each, while pre-funded warrants were priced at $2.9999 each, permitting the acquisition of up to approximately 930,215 common shares.
This influx of funds is crucial as Smartkem plans to utilize the net proceeds for working capital and general operational needs, thereby strengthening its financial foundation. Craig-Hallum Capital Group LLC acted as the exclusive placement agent for this successful offering, displaying its commitment to fostering innovations in the electronics landscape.
Further, the company confirmed that it entered into a registration rights agreement, thereby ensuring the issuance of shares from the private placement will be registered for resale. This will provide liquidity for the investors involved, enhancing their confidence in Smartkem’s future prospects. The registration will be executed by the 10th day following the filing of the company’s annual report for the fiscal year ending December 31, 2024, or by April 25, 2025, whichever comes first.
The completion of this offering demonstrates Smartkem’s proactive approach in the highly competitive field of electronics. As the company continues to innovate with its patented TRUFLEX® liquid semiconductor polymers, it aims to produce a new kind of transistor compatible with various display technologies, including next-generation microLED screens.
Smartkem is strategically positioned for growth, backed by a robust research and development hub in Manchester, UK, and a dedicated application lab in Taiwan. The company holds a diverse intellectual property portfolio, boasting 138 issued patents across 18 families, supplemented by 16 pending patents and 40 trade secrets. This solid foundation underlines its commitment to innovation in display technology.
The future for Smartkem looks promising. By leveraging the fresh influx of capital, the company is set to accelerate its roadmap towards delivering affordable, high-performance displays that challenge traditional technologies. This funding milestone further solidifies the company’s position within the rapidly evolving electronics industry and enhances its capacity to meet emerging market demands.
As Smartkem continues to pursue its vision of transforming the electronics sector, this significant capital raise is a clear indication of investor confidence in its dynamic potential, showcasing the pivotal role that organic thin-film transistors could play in the future of electronic displays. Investors and industry stakeholders are optimistic about what this new funding will enable Smartkem to achieve in the ever-evolving landscape of electronics.
Topics Business Technology）
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