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SmartKem Strikes Deal to Convert Preferred Stock

SmartKem Strikes Deal to Convert Preferred Stock

SmartKem (SMTK) has released an update to notify the public and investors about an entry into a material definitive agreement.

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SmartKem, Inc. sold convertible preferred stock and warrants in two closings, followed by a Consent Agreement allowing holders to convert most of their Series A-1 Preferred Stock into Common Stock, while exchanging the remainder for Class C Warrants. The company amended and restated the Certificate of Designation for the Series A-1 Preferred Stock, reflecting a reverse split and other adjustments. A Registration Rights Agreement was entered into, requiring the company to register the resale of certain securities with the SEC. The agreement also includes provisions for liquidated damages if the company does not meet registration deadlines, as well as “piggy-back” registration rights under certain conditions.

For further insights into SMTK stock, check out TipRanks’ Stock Analysis page.

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