On March 18, 2026, SmartKem, Inc. announced that it has entered into a Securities Purchase Agreement with accredited investors to issue senior secured promissory notes totaling $3,750,000. The notes will be sold for an aggregate purchase price of $2,625,000, reflecting a significant original issue discount of approximately 30%. The notes will not accrue interest unless an event of default occurs, at which point a 14% annual interest rate will apply. The maturity date for the notes is set for six months after issuance, with potential extensions available to buyers in the event of default. Additionally, the company has pledged its existing and future assets as collateral for the notes, providing a first priority perfected security interest to the collateral agent on behalf of the buyers. This financing is expected to bolster SmartKem's liquidity position, allowing for continued operational execution and strategic initiatives. Furthermore, the company has entered into settlement agreements with holders of prior notes, resolving claims and ensuring a smoother transition into this new financing arrangement. The settlement includes a cash payment of $300,000 and the assignment of certain intellectual property rights to a subsidiary, Smartkem IP LLC. This strategic move is anticipated to enhance the company's operational capabilities and market position, although it does come with the risk of dilution and increased financial obligations. Overall, this financing arrangement is viewed positively, as it provides immediate capital while also addressing previous financial commitments.

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