InvestmentJul 27, 2026, 04:12 PM
SmartKem Funds $4.5M Bridge Loan to Ferrox Critical Minerals
AI Summary
SmartKem, Inc. has provided an additional $4.5 million bridge loan to Ferrox Critical Minerals, evidenced by a convertible promissory note. This note includes an origination fee, a 5.0% annual interest rate, and conversion terms based on Ferrox's valuation. SmartKem also secured a right of first refusal and exclusivity for potential future transactions with Ferrox. Additionally, SmartKem completed further closings of its previously announced private placement, selling Series A Preferred Stock and Warrants for aggregate proceeds of $3.0 million in July 2026.
Key Highlights
- SmartKem provided an additional $4,500,000 bridge loan to Ferrox Critical Minerals.
- The convertible promissory note accrues interest at 5.0% per annum and matures on January 31, 2027.
- SmartKem received an origination fee of $400,000 for the loan.
- The note is convertible into Ferrox ordinary shares at a price based on fair market value or an $80M equity valuation.
- SmartKem has a right of first refusal on Fundamental Transactions involving Ferrox.
- Ferrox granted SmartKem exclusivity for Fundamental Transactions through December 31, 2026.
- SmartKem sold 2,500 Series A Preferred Stock and 5,377,025 Warrants for $2.0 million on July 24, 2026.
- SmartKem previously sold 1,250 Series A Preferred Stock and 2,688,404 Warrants for $1.0 million on July 16, 2026.
Price Impact
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