Business
SMARTKEM, INC. RECEIVES $12.2 MILLION IN INITIAL CLOSING OF PRIVATE PLACEMENT
MANCHESTER, England, June 15, 2023 /PRNewswire/ -- SmartKem, Inc. ("SmartKem" or the "Company") (OTCQB: SMTK), a company seeking to reshape the world of
About this update from Smartkem, Inc.
[{"type":"text","content":"MANCHESTER, England, June 15, 2023 /PRNewswire/ -- SmartKem, Inc. (\"SmartKem\" or the \"Company\") (OTCQB: SMTK), a company seeking to reshape the world of electronics with its disruptive organic thin-film transistors (OTFTs), today announced that it had sold in a private placement an aggregate of (i) 9,229 shares of its Series A-1 Convertible Preferred Stock, stated value $1,000 per share, (ii) 2,950 shares of its Series A-2 Convertible Preferred Stock, stated value $1,000 per share, (iii) Class A Warrants to purchase up to 48,716,000 shares of its common stock and (iv) Class B Warrants to purchase up to 27,943,860 shares of its common stock, for aggregate gross proceeds of approximately $12.2 million before deducting placement agent fees and other offering expenses. The shares of A-1 Convertible Preferred Stock are initially convertible into an aggregate of 36,916,000 shares of common stock of the Company, and the shares of Series A-2 Convertible Preferred Stock are initially convertible into an aggregate of 11,800,000 shares of common stock of the Company, in each case, at a conversion price of $0.25 per share. The Class A Warrants have an exercise price of $0.25 per share, are exercisable immediately, and will expire five years from the date of issuance. The Class B Warrants have an exercise price of $0.01 per share, are exercisable immediately, and will expire five years from the date of issuance.\nThe Company may sell additional securities in the private placement for aggregate proceeds of up to $18.0 million, less the gross proceeds received at the initial closing described above on or prior to 5:00 p.m. on June 23, 2023. \nSmartKem intends to use the net proceeds from the private placement for working capital and general corporate purposes.\nThe Special Equities Group, a division of Dawson James Securities, Inc., and Katalyst Securities LLC acted as the placement agents for the private placement.\nThe securities offered in the private placement are being offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended (the \"Act\") and/or Rule 506(b) of Regulation D promulgated thereunder and have not been registered under the Act or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States absent registration with the Securities and Excha...