InvestmentApr 29, 2026, 04:54 PM
SMTK Invests $2.3M in Ferrox Critical Minerals via Convertible Note
AI Summary
SmartKem, Inc. has invested $2.3 million in Ferrox Critical Minerals, a British Virgin Islands company, through a convertible promissory note. The note bears a 5% annual interest rate and matures by October 30, 2026, or earlier under certain conditions. SmartKem, as the noteholder, has the option to convert the principal and accrued interest into ordinary shares of Ferrox Critical Minerals. Additionally, SmartKem secured a right of first refusal on future 'Fundamental Transactions' by Ferrox and an exclusivity period until October 30, 2026, preventing Ferrox from soliciting other deals.
Key Highlights
- SMTK invested $2.3 million in Ferrox Critical Minerals via a convertible promissory note.
- The note carries a 5% annual interest rate, maturing by October 30, 2026.
- SMTK has the option to convert the note's principal and interest into Ferrox Ordinary Shares.
- SMTK received a $200,000 loan origination fee from Ferrox Critical Minerals.
- SMTK secured a right of first refusal on Ferrox's future 'Fundamental Transactions'.
- Ferrox Critical Minerals is subject to exclusivity regarding Fundamental Transactions until October 30, 2026.