On March 20, 2026, SmartKem, Inc. entered into a securities purchase agreement with institutional investors to sell 11,365,350 shares of its common stock at a price of $0.2303 per share. The offering, which is expected to close on or about March 26, 2026, is anticipated to generate gross proceeds of approximately $2.62 million before deducting offering expenses. The shares are being offered under the company's effective shelf registration statement on Form S-3, which was declared effective by the SEC on August 22, 2024. The net proceeds from this offering are intended for working capital and general corporate purposes. The agreement includes standard representations, warranties, and covenants, and the company has filed a legal opinion regarding the validity of the shares being issued. This transaction is expected to provide SmartKem with additional liquidity to support its operational needs and strategic initiatives, although it may lead to some dilution for existing shareholders. The company has emphasized that the representations and warranties in the purchase agreement are primarily for the benefit of the parties involved and not necessarily indicative of the company's overall financial health or future performance.

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