SmartKem, Inc., a Delaware-based company listed on the NASDAQ under the ticker symbol SMTK, recently completed an offering to address compliance concerns raised by the Listing Qualifications Department of The Nasdaq Stock Market LLC. According to a recent Form 8-K filed with the Securities and Exchange Commission on January 8, 2025, SmartKem received a letter on November 15, 2024, indicating non-compliance with the minimum stockholders’ equity requirement for continued listing on the Nasdaq Capital Market.
The company’s stockholders’ equity was reported at $2.3 million in its Quarterly Report on Form 10-Q for the period ending September 30, 2024, below the required minimum of $2.5 million. As a response to this, SmartKem initiated an offering on December 20, 2024, issuing registered shares of common stock and warrants to investors in both public and private offerings, resulting in net proceeds of approximately $6.6 million.
NASDAQ will continue monitoring SmartKem’s adherence to the Minimum Stockholders’ Equity Requirement, with a warning that failure to show compliance in future periodic reports could lead to potential delisting.
The Form 8-K also highlighted SmartKem’s financial results and investment activities. For the period ending November 30, 2024, the company reported solid figures, including a sequential increase in adjusted Net Investment Income (NII) per share, strong deployments, and robust originations.
SmartKem reassured investors of its financial stability and strategic planning as it navigates through the changing economic landscape. The company’s proactive measures to address compliance concerns demonstrate its commitment to maintaining a strong position in the market.
Investors and stakeholders can access additional information regarding SmartKem’s recent financial results and operational strategies on the company’s investor relations website.
Please note that the information provided in this article is based on the Form 8-K SEC filing by SmartKem on January 8, 2025, and any updates or changes may not be reflected in this article.
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Smartkem’s 8K filing here.
About Smartkem
SmartKem, Inc, together with its subsidiaries, develops materials and processes used to make organic thin-film (OTFT) transistors for the manufacture of flexible electronics. The company offers TRUFLEX semiconductor and dielectric inks, which uses low temperature printing processes to make transistors for the display industry.
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