SMTK Funds $4.5M Convertible Bridge Loan to Ferrox with Strategic Rights

SmartKem, Inc. (SMTK) announced it has funded an additional $4.5 million convertible bridge loan to Ferrox Critical Minerals. This agreement provides SmartKem with strategic advantages, including a right of first refusal on major transactions and an exclusivity period. The filing also disclosed a recent $2.0 million closing of a private placement.

Key Details

• Bridge Loan: On July 27, 2026, the company funded a $4.5 million convertible promissory note to Ferrox Critical Minerals, which matures on January 31, 2027 and accrues interest at 5% per annum.
• Strategic Rights: The agreement grants SmartKem a right of first refusal on fundamental transactions involving Ferrox and an exclusivity period for such deals through December 31, 2026.
• Conversion Terms: The note is convertible into Ferrox ordinary shares based on the lower of fair market value or a total equity valuation of $80 million for Ferrox.
• Additional Financing: Separately, on July 24, 2026, the company raised approximately $2.0 million through the sale of 2,500 shares of Series A Preferred Stock and 5,377,025 warrants in a private placement.