SmartKem Funds $2.5M Convertible Bridge Loan to Ferrox, Raises $4.0M in Private Placement

SmartKem, Inc. announced it has funded an additional $2.5 million convertible bridge loan to Ferrox Critical Minerals and separately raised approximately $4.0 million in cash from a private placement. The loan agreement, effective June 22, 2026, provides SmartKem with conversion rights into Ferrox equity, a right of first refusal, and an exclusivity period for potential future transactions.

Key Details

• Convertible Loan to Ferrox: SmartKem provided a $2.5 million convertible promissory note to Ferrox Critical Minerals, maturing on December 31, 2026, with a 5.0% annual interest rate. SmartKem was paid a $200,000 origination fee.
• Strategic Rights: The note is convertible into Ferrox shares based on the lower of fair market value or a total equity value of $80 million for Ferrox. It also grants SmartKem transaction exclusivity and a right of first refusal through December 31, 2026.
• Private Placement: On June 22, 2026, the company completed an additional closing of a previously announced private placement, selling 5,000 shares of Series A Preferred Stock and warrants to purchase 10,753,615 shares of common stock for aggregate proceeds of approximately $4.0 million.