InvestmentJun 26, 2026, 04:12 PM
SmartKem Funds $2.5M Convertible Loan to Ferrox; Raises $4M via Placement
AI Summary
SmartKem, Inc. has provided an additional $2.5 million convertible bridge loan to Ferrox Critical Minerals, which includes conversion rights, negative covenants, and a right of first refusal on Ferrox's assets or equity. This loan bears a 5.0% interest rate and matures on December 31, 2026. Additionally, SmartKem completed an additional closing of a previously announced private placement, issuing 5,000 shares of Series A Preferred Stock and over 10.7 million Warrants for approximately $4.0 million in cash.
Key Highlights
- SmartKem provided an additional $2,500,000 convertible bridge loan to Ferrox Critical Minerals.
- The convertible note accrues interest at 5.0% per annum and matures on December 31, 2026.
- SmartKem received an originate fee of $200,000 for the loan.
- The note is convertible into Ferrox ordinary shares at a price based on fair market value or an $80,000,000 total equity valuation.
- SmartKem secured a right of first refusal and exclusivity on fundamental transactions involving Ferrox through December 31, 2026.
- SmartKem completed an additional closing of a private placement, raising approximately $4.0 million in cash.
- The private placement involved the issuance of 5,000 shares of Series A Preferred Stock and 10,753,615 Warrants.
Price Impact
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