Form 8-K

8-K — SmartKem, Inc.

Accession: 0001104659-26-078247

Filed: 2026-06-26

Period: 2026-06-22

CIK: 0001817760

SIC: 3674 (SEMICONDUCTORS & RELATED DEVICES)

Item: Entry into a Material Definitive Agreement

Item: Unregistered Sales of Equity Securities

Item: Financial Statements and Exhibits

Documents

8-K — tm2618924d2_8k.htm (Primary)

EX-4.1 — EXHIBIT 4.1 (tm2618924d2_ex4-1.htm)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — FORM 8-K

8-K (Primary)

Filename: tm2618924d2_8k.htm · Sequence: 1

false

0001817760

2026-06-22

iso4217:USD

xbrli:shares

iso4217:USD

xbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event

reported): June 22, 2026

SmartKem, Inc.

(Exact name of registrant as specified in its charter)

Delaware

001-42115

85-1083654

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

3 Germay Drive, Unit 4 #1029

Wilmington, DE, 19804

(Address of principal executive offices, including

zip code)

N/A

(Former name or former address, if changed since

last report)

Check the appropriate box below if the Form 8-K filing is intended

to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to

Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of exchange on which registered

Common Stock, par value $0.0001 per share

SMTK

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth

company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b - 2 of the Securities Exchange

Act of 1934 (§240.12b - 2 of this chapter).

Emerging growth

company x

If an emerging

growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any

new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01. Entry into a

Material Definitive Agreement

On June 22, 2026, SmartKem, Inc.

(the “Company”) funded an additional bridge loan to Ferrox Critical Minerals, a British Virgin Islands company (“Ferrox”),

in the original principal amount of $2,500,000.00, which loan was evidenced by that certain Convertible Promissory Note (the “Note”)

issued by Ferrox to the Company. The obligations evidenced by the Note shall accrued interest at a rate of 5.0% per annum and will mature

on December 31, 2026. Pursuant to the terms of the Note, the Company was paid an originate fee of $200,000.00. Upon an event of default

(as defined in the Note), the Company will be paid a default management fee of $4,500.00 per day and the interest rate shall increase

to 15% per annum.

The obligations under the Note

are convertible into ordinary shares of Ferrox (“Ordinary Shares”) at any time by the Company at a price per Ordinary Share

equal to the lower (i) the fair market value of an Ordinary Share at the time of conversion as determined by an independent appraisal

firm or (ii) the value of an Ordinary Share determined based on a total equity value of Ferrox of $80,000,000, on a fully-diluted basis.

The conversion price is subject to customary adjustments for stock dividends, stock splits and stock combinations.

The Note also contains customary

negative covenants restricting Ferrox’s ability to, among other things, redeem any of its equity securities, incur or repay indebtedness,

make or declare any dividends or distributions on its equity securities, sell, lease or otherwise dispose of its assets, amend its charter

or enter into any transactions with its affiliates.

The Note also contains a right

of first refusal in favor of the Company on any (i) direct or indirect transfer, sale, lease, license or encumbrance of all or any portion

of the capital stock or assets of Ferrox or any of its subsidiaries (other than (x) inventory to be sold in the ordinary course of business

consistent with past practice and (y) sales of immaterial or obsolete assets), (ii) any merger, consolidation or other business combination

relating to Ferrox or any of its subsidiaries to the extent such transaction constitutes a change of control, (iii) any recapitalization,

reorganization or any other extraordinary business transaction involving or otherwise relating to Ferrox or any of its subsidiaries to

the extent such transaction constitutes a change of control or (iv) equity issuance or debt incurrence involving Ferrox or any of its

subsidiaries (each, a “Fundamental Transaction”).

Ferrox has also granted the Company

exclusivity with respect to any Fundamental Transaction through December 31, 2026.

The Note is additional to the

previously announced convertible promissory note issued by Ferrox to the Company on April 23, 2026.

The foregoing descriptions of

the terms of the Note do not purport to be complete and are subject to, and qualified in their entirety by reference to, the Note which

is annexed hereto as Exhibit 4.1 and is incorporated herein by reference.

Item 3.02 Unregistered Sales of Equity Securities.

Private Placement

Additional Closing under Securities Purchase

Agreement

As previously announced, on March 30, 2026, the

Company, entered into a Securities Purchase Agreement (the "Preferred Stock Purchase Agreement") with certain institutional

investors (collectively, the "Buyers"). Pursuant to the Preferred Stock Purchase Agreement, up to 21,411.5 shares of the Company’s

Series A convertible preferred stock, par value $0.001 per share (the “Series A Preferred Stock”) and accompanying warrants

(“Warrants”) to purchase shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”)

may be purchased for an aggregate purchase price of up to $17,129,200.00 million in one or more closings.

As previously announced, on March 30, 2026 at

the initial closing, pursuant to the Preferred Stock Purchase Agreement, the Company issued and sold, and certain Buyers purchased, in

a private placement: (i) 11,411.5 shares of the Series A Preferred Stock, with a stated value of $1,000 per share, convertible into shares

of Common Stock and (ii) warrants to purchase up to 23,251,960 shares of Common Stock (the "Warrants").

Pursuant to the Preferred Stock Purchase Agreement,

the Buyers have the right, severally, subject to the satisfaction of certain conditions, to require the Company to participate in one

or more additional closings for the purchase of up to an aggregate of 10,000 additional shares of Series A Preferred Stock and Warrants

(each such transaction, an “Additional Closing”).

On June 22, 2026, at an Additional Closing pursuant

to the Preferred Stock Purchase Agreement, the Company issued and sold, and certain Buyers purchased, in a private placement: 5,000 shares

of the Series A Preferred Stock and 10,753,615 Warrants to purchase shares of Common Stock for aggregate proceeds of approximately $4.0

million, paid in cash.

All such securities will not be registered under

the Securities Act in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506 of

Regulation D promulgated thereunder, or under any state securities laws. The Company relied on this exemption from registration in entering

into the Securities Purchase Agreement and the Company will rely upon this exemption from registration in issuing such securities based

in part on representations made by the investors in the Securities Purchase Agreement. The securities may not be offered or sold in the

United States absent registration or an applicable exemption from registration requirements. Neither this Current Report on Form 8-K,

nor the exhibits attached hereto, is an offer to sell or the solicitation of an offer to buy the securities described herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibits

Description

4.1

Convertible Promissory Note issued by Ferrox Critical Minerals to SmartKem, Inc. on June 22, 2026

104

Cover Page Interactive Data File (Embedded within the Inline XBRL document)

Signature

Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SMARTKEM, INC.

Dated: June 26, 2026

By:

/s/ Barbra C. Keck

Barbra C. Keck

Chief Financial Officer

EX-4.1 — EXHIBIT 4.1

EX-4.1

Filename: tm2618924d2_ex4-1.htm · Sequence: 2

Exhibit 4.1

FERROX CRITICAL MINERALS

CONVERTIBLE PROMISSORY NOTE

Original Issuance Date: June 22, 2026

FOR

VALUE RECEIVED, Ferrox Critical Minerals, a a British Virgin Islands (“BVI”) company

(the “Company”), promises to pay to the order of the noteholder set forth on the signature page attached hereto (the

“Holder”), or its registered assigns, the principal amount of $2,700,000.00 (US dollars) (the "Principal Amount"),

or such lesser amount as shall equal the outstanding principal amount hereof, together with interest from the date of this Convertible

Promissory Note (this “Note”) on the unpaid principal balance at a rate equal to 5% per annum, computed on the basis

of the actual number of days elapsed and a year of 365 days. Unless this Note is earlier converted in accordance with the provisions hereof,

all unpaid principal, together with any then accrued but unpaid interest and any other amounts payable hereunder, shall be due and payable

on the earliest to occur of: (a) December 31, 2026; (b) the occurrence of an Event of Default (as defined below); or (c) if definitive

transaction documents (“Definitive Transaction Documents”) related to a Fundamental Transaction (as defined below)

are entered into between the Company and Holder prior to December 31, 2026, the earlier to occur of (i) the date on which the transactions

contemplated by the Definitive Transaction Documents are consummated or (ii) the date on which the Definitive Transaction Documents are

terminated in accordance with their terms (such earliest date is hereinafter referred to as the “Maturity” or the “Maturity

Date”).

The following

is a statement of the rights of the Holder of this Note and the conditions to which this Note is subject, to which the Holder, by the

acceptance of this Note, agrees:

1.             Use of Proceeds. The proceeds from the issuance of this Note shall be used for general corporate and working capital purposes.

2.             Interest; Fees.

(a)            Payment and Accrual of Interest. Interest shall accrue daily, and subject to section 2(b), be calculated annually, on the

original Principal Amount of this Note from the Original Issuance Date through the date on which this Note is repaid in full at the rate

of five percent (5.0%) per annum. Accrued interest on this Note shall be due and payable on the Maturity Date.

(b)

Interest upon Event of Default. From and after the Maturity Date or upon the occurrence of an Event of Default (as hereinafter

defined) that is not remedied within the applicable cure period, interest rate set forth in Section 2(a) herein shall be increased to

fifteen percent (15.0%) until all Obligations (as defined below) under the Note have been paid in full; provided, however, in no

event shall the interest payable hereunder exceed the maximum rate permitted by applicable law. The interest accruing under this subsection

(b) shall be immediately due and payable by the Company to the Holder and shall automatically be additional indebtedness evidenced by

this Note.

(c)

Fees Upon Event of Default. Upon the occurrence of an Event of Default, in addition to the accrued and unpaid Principal

Amount and interest under this Note, the Company shall pay to the Holder a default management fee (the “Default Management Fee”)

in the amount of $4,500.00 (US dollars) per day, which amount shall be immediately due and payable

at the end of each calendar week during such period as an Event of Default remains uncured and shall, if not timely paid, accrue interest

at the same interest rate as the annual interest rate under this Note.

(d)

Payments Free of Withholding of Taxes. Any payments by or on account of any obligation of the Company hereunder shall be

made without deduction or withholding for any taxes, except as required by applicable law.

(e)

Calculation and other matters regarding Interest and Fees. Interest and fees under this Note shall be calculated on the

basis of a calendar year unless otherwise specified. Any rate that is calculated with reference to a period (the “deemed interest

period”) that is less than the actual number of days in the calendar year of calculation is equivalent to a rate based on a calendar

year calculated by multiplying that rate of interest by the actual number of days in the calendar year of calculation and dividing by

the number of days in the deemed interest period. All calculations of interest and fees under this Note shall be made on the basis of

the nominal rates described in this Note and not on the basis of effective yearly rates or on any other basis that gives effect to the

principle of deemed reinvestment. The parties acknowledge that there is a material difference between the stated nominal rates and effective

yearly rates taking into account reinvestment, and that they are capable of making the calculations required to determine effective yearly

rates. In this section, any reference to a “calendar year” means the calendar year in which the period for which the calculation

in question falls. If the period falls in two calendar years, one of which is a leap year, the calculation shall be done separately for

the parts of the period that fall in each calendar year and the calculated amounts for each period shall be added.

(f)             Originate Fee. On the Original Issuance Date, the Company shall pay to the Holder a loan origination fee equal to $200,000.00

(US dollars). Such fee may be deducted by the Holder from the Principal Amount funded on the Original Issuance Date.

Prepayment. The Principal Amount may be prepaid by the Company at any time prior to Maturity only upon the written consent

of Holder. Any prepayment shall be made, without penalty or premium, in all cases in addition to any accrued but unpaid interest and accrued

and unpaid Default Management Fees (and interest thereon if applicable) as provided herein as of the date of any such payment.

Conversion.

(a)            Voluntary

Conversion. The Principal Amount of this Note plus accrued and unpaid interest and any other amounts (including Default Management

Fees) payable under this Note (the “Obligations”) may be converted in whole or part and from time to time by the Holder

in its sole discretion at any time. In the event of such conversion, the Obligations or applicable portion thereof being converted shall

be converted into such number of fully paid and non-assessable ordinary shares of the Company (“Ordinary Shares”) as

is determined by dividing (i) the portion of the Obligations being converted, by (ii) the then applicable Conversion Price

(as defined below).

(b)            Conversion

Price. The term “Conversion Price” shall mean a price per Ordinary Share equal to the lower of (a) the fair market

value of an Ordinary Share at the time of election of such conversion (as converted into US dollars at the rate published by the Bank

of New York on the Business Day (as defined below) immediately preceding the time of election of such conversion ) as determined by an

independent appraisal firm agreeable to the Holder and (b) the value of an Ordinary Share as determined based on a total equity value

of the Company $80,000,000 (U.S. dollars), as calculated on a fully-diluted basis after giving effect to the conversion and exercise of

all (except for the Note) outstanding convertible and exercisable instruments. The period of time between the date on which the Company

receives a notice of conversion from the Holder to the date on which the Conversion Price is determined shall be referred to as the “Calculation

Period.” “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks

in the City of New York are authorized or required by law to remain closed.

to Conversion Price.

(i) If at any time during

the Calculation Period when the Conversion Price has been determined but the conversion has not been effected the Company (i) subdivides

outstanding Ordinary Shares into a larger number of Ordinary Shares,

(ii) combines (including by way of a reverse split) outstanding Ordinary Shares into a smaller number

of Ordinary Shares, or (iii) issues, in the event of a reclassification of Ordinary

Shares, any Ordinary Share, then the Conversion Price shall be adjusted by multiplying the

Conversion Price by a fraction of which the numerator shall be the number of Ordinary Shares outstanding

immediately before such event (as calculated on a fully-diluted basis as contemplated in Section 3(b)), and of which the denominator shall

be the number of Ordinary Shares outstanding immediately after such event (as calculated on a fully-diluted

basis as contemplated in Section 3(b)). Any adjustment made pursuant to this Section shall become effective immediately after the record

date for the determination of members entitled to receive such distribution and shall become effective immediately after the effective

date in the case of a subdivision, combination or re-classification.

(ii) If at any time or from

time to time after the issuance date of this Note there shall be a capital reorganization of the Company (other than by way of a stock

split or combination of shares or stock dividends or distributions, or a reclassification, exchange or substitution of shares), then as

a part of such reorganization provision shall be made so that, upon any subsequent conversion of this Note, the Holder shall have the

right to receive, in lieu of Ordinary Shares, the kind and amount of shares of stock and other securities

or property of the Company resulting from the reorganization.

(d)            Conversion

Procedure.

(i)             Conversion.

Upon any conversion of this Note or any portion thereof, the Obligations payable under this Note or the applicable portion thereof shall

be converted automatically, without any further action by the Holder and whether or not the Note is surrendered to the Company, and the

converted portion of the Note shall be deemed fully-satisfied and cancelled. Accrued and unpaid interest and Default Management Fees shall

be deemed to be the first portion of the Note or portion thereof to convert, and conversion of the Principal Amount or any portion thereof

shall only occur after all other Obligations hereunder have been paid or converted.

(ii)            Fractional

Securities; Non-assessable; Effect of Conversion. No fractional securities or scrip representing fractional securities shall be issued

upon conversion of this Note. With respect to any fraction of a share called for upon the conversion of this Note, such fractional share

shall be rounded up the nearest whole share, without any further payment required of the Holder. The Company covenants that the shares

issuable upon the conversion of this Note will, upon conversion of this Note, be validly issued, fully paid and non-assessable and free

from all taxes, liens and charges in respect of the issue thereof. Upon conversion of this Note in full, the Company shall be forever

released from all its obligations and liabilities under this Note. The Holder shall be treated for all purposes as the record holder or

holders of such shares of Common Stock on the date of providing the notice set forth above.

Negative Covenants. As long as any portion of this Note remains outstanding, the Company shall

not, and shall not permit any of its subsidiaries (whether or not a subsidiary on the Original Issue Date) to, directly or indirectly:

(a)

repay, repurchase or offer to repay, repurchase or otherwise acquire shares of its outstanding equity securities or rights to acquire

same;

(b)           incur, repay, repurchase or offer to repay, repurchase or otherwise acquire any indebtedness, other

than this Note and trade payables incurred in the ordinary course of business, consistent with past practices of the Company;

(c)

pay cash dividends or distributions on any equity securities;

(d)           sell, lease or otherwise dispose of all or substantially all of its assets;

(e)            lend money, give credit or make advances to any person, firm, joint venture or corporation, including,

without limitation, officers, directors, employees, and affiliates of the Company;

(f)            fail to (x) preserve and maintain its existence and corporate form, (y) protect and preserve all of

its property useful in and material to its business, including without limitation, copyrights, patents, trade names and trademarks or

(z) observe and remain in compliance with all applicable laws;

(g)           amend its charter documents, including, without limitation, its certificate of incorporation and bylaws,

in any manner that materially and adversely affects any rights of the Holder;

(h)           enter into any transaction with any affiliate of the Company; or

(i)

enter into any agreement with respect to any of the foregoing.

6.             Other Agreements.

(a)

Right of First Refusal.

(i)

For so long as any portion of the Obligations remain outstanding and for a period of 24 months thereafter, in the event of any

(i) direct or indirect transfer, sale, lease, license or encumbrance of all or any portion of the capital stock or assets of the Company

or any of its subsidiaries (other than (x) inventory to be sold in the ordinary course of business consistent with past practice and (y)

sales of immaterial or obsolete assets), (ii) any merger, consolidation or other business combination relating to the Company or any of

its subsidiaries to the extent such transaction constitutes a change of control, (iii) any recapitalization, reorganization or any other

extraordinary business transaction involving or otherwise relating to the Company or any of its subsidiaries to the extent such transaction

constitutes a change of control or (iv) equity issuance or debt incurrence involving the Company or any of its subsidiaries (each, a “Fundamental

Transaction”), the Company will grant (and will cause its subsidiaries to grant to) Holder, or its transferees or assigns, a

right of first refusal to effect such Fundamental Transaction at the same price and on the same terms and conditions as those offered

to the Company or its subsidiary;

(ii)

The Company must deliver a Fundamental Transaction Notice (as defined below) to the Holder not later than 30 days prior to the

consummation of such Fundamental Transaction. Such Fundamental Transaction Notice shall contain the material terms and conditions (including

price and form of consideration) of the proposed Fundamental Transaction, the identity of the prospective purchaser or purchasers and

the intended date of the proposed Fundamental Transaction. To exercise its Right of First Refusal under this Section 6(a), the Holder

must deliver a notice to the Company notifying the Company of its intention to exercise its Right of First Refusal within 15 Business

Days after the Holder’s receipt of the Fundamental Transaction Notice notifying the Company of its intention to exercise its Right

of First Refusal (a “ROFR Notice”). The closing of such Fundamental Transaction shall take place as soon as practical

after the Holder’s delivery of a ROFR Notice, but in no event later than 90 days thereafter;

(iii)         If the Holder does not timely deliver a ROFR Notice in accordance with Section 6(a)(ii), then the Company may proceed with the

Fundamental Transaction, but only in accordance with the terms (including the purchase price) set forth in the Fundamental Transaction

Notice, within 90 days after delivery of the Fundamental Transaction Notice (the “Fundamental Transaction Closing Period”);

provided, that if the Company does not enter into a definitive acquisition agreement within the Fundamental Transaction Closing

Period or such Fundamental Transaction is not consummated pursuant to a definitive acquisition agreement entered into during the Fundamental

Transaction Closing Period, the Company shall be required to again comply with this Section 6(a) prior to entering into a definitive acquisition

agreement with respect to such Fundamental Transaction;

(iv)

As used in this Section 6(a), the following terms have the respective meanings set forth below.

“Fundamental Transaction Notice”

means a written notice from the Company to the Holder setting forth the terms and conditions of a proposed Fundamental Transaction.

“Right of First Refusal”

means the right, but not an obligation, of, in the case of a Fundamental Transaction, to effect a Fundamental Transaction on the terms

and conditions specified in the Fundamental Transaction Notice.

(b)

Exclusivity. Until December 31, 2026, the Company will not, directly or indirectly, cause nor permit any of its affiliates

or any of its or their directors, employees, agents or representatives to (x) take any action to directly or indirectly solicit, initiate,

encourage or assist the submission of any proposal, negotiation or offer from any person or entity other than Holder relating to a Fundamental

Transaction, or (y) enter into any discussions, negotiations or execute any agreement related to any Fundamental Transaction.

(c)            Access. For so long as this Note remains outstanding, Holder shall have access to the Company’s management from time

to time (but no less frequently than twice per month) for phone call updates and, on at least 24 hours’ prior notice, in-person

meetings via video-conference (i.e., ZOOM) or at the Company’s office as determined by Holder.

Default; Remedies.

(a)            Default.

The Company shall be in default under this Note upon the happening of any condition or event set forth below (each, an “Event

of Default”):

(i)             the

Company’s failure to pay when due any principal or interest payment or other payment due hereunder on the due date thereof hereunder,

and such default shall continue unremedied for a period of five (5) days following such due date;

(ii)            the

Company shall (A) apply for or consent to the appointment of a receiver, receiver and manager, trustee, liquidator or custodian of itself

or of all or a substantial part of its property, (B) be unable, or admit in writing its inability, to pay its debts as they mature, (C)

make a general assignment for the benefit of its or any of its creditors, (D) be dissolved or liquidated, (E) become insolvent (as such

term may be defined or interpreted under any applicable statute), (F) commence a voluntary case or other proceeding seeking liquidation,

reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter

in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary

case or other proceeding commenced against it, or (G) take any action for the purpose of effecting any of the foregoing;

(iii)           proceedings

for the appointment of a receiver, receiver and manager ,trustee, liquidator or custodian of the Company or of all or a substantial part

of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect

to the Company or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced

and an order for relief entered or such proceeding shall not be dismissed or discharged within 60 days of commencement;

(iv)           the

Company shall fail to perform any material covenant, term, provision, condition, agreement or obligation of the Company, or any representation

shall become materially untrue as of the date it was given, under this Note (other than for non-payment) or under any Definitive Transaction

Document; or

(v)            the

Company shall fail to pay when due or otherwise be in material default of any of its indebtedness that gives the holder thereof the right

to accelerate such indebtedness.

(b)            Remedies.

(i)             Upon

the occurrence or existence of any Event of Default under Section 7(a)(i), the Holder of this Note may, by written notice to the

Company, declare the entire outstanding Principal Amount of the Note, any accrued but unpaid interest and any other amounts payable thereunder,

to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly

waived.

(ii)            Upon

the occurrence or existence of any Event of Default described in Sections 7(a)(ii)-(v), immediately and without notice, the entire outstanding

principal amount of the Note, any accrued but unpaid interest and any other amounts payable under the Note shall automatically become

immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived,

anything contained herein to the contrary notwithstanding. In addition to the foregoing remedies, upon the occurrence or existence of

any Event of Default, the Holder may exercise any other right power or remedy otherwise permitted to it by law, either by suit in equity

or by action at law, or both.

(iii)            As

soon as possible and in any event within two Business Days after the Company becomes aware that an Event of Default has occurred, the

Company shall notify the Holder in writing of the nature, extent and time of and the facts surrounding such Event of Default, and the

action, if any, that the Company proposes to take with respect to such Event of Default.

8.             Security Interest; Ranking. The Obligations under this Note are unsecured The Obligations

under this Note shall rank senior to any of the Company’s existing debt obligations.

9.             Representations of Holder.

(a)            Organization,

Good Standing and Qualification. Holder is a corporation duly organized, validly existing and in good standing under the laws of the

State of Delaware. Holder has the requisite corporate power and authority to own and operate its properties and assets, to carry on its

business as presently conducted, to execute and deliver the Note and to perform its obligations hereunder. Holder is presently qualified

to do business as a foreign entity in each jurisdiction where the failure to be so qualified could reasonably be expected to have a material

adverse effect on the Company’s financial condition or business as now conducted.

(b)            Authorization.

All corporate action on the part of Holder and its directors, officers and stockholders necessary for the performance of all of Holder’s

obligations thereunder, has been taken prior to the date hereof. The Note, as executed and delivered by Holder, constitutes valid and

binding obligations of Holder, enforceable in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,

insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally

10.

Representations and Warranties of the Company. The Company represents and warrants to Holder

as of the date hereof that:

(a)            Organization,

Good Standing and Qualification. The Company is a company duly organized, validly existing and in good standing under the laws of

BVI. The Company has the requisite corporate power and authority to own and operate its properties and assets, to carry on its business

as presently conducted, to execute and deliver the Note and to perform its obligations hereunder. The Company is presently qualified to

do business in each jurisdiction where the failure to be so qualified could reasonably be expected to have a material adverse effect on

the Company’s financial condition or business as now conducted.

(b)            Authorization.

All corporate action on the part of the Company and its directors, officers and stockholders necessary for the authorization, sale, issuance

and delivery of the Note, and the performance of all of the Company’s obligations thereunder (including the issuance of equity securities

by the Company in the event of a conversion of this Note or any portion hereof), has been taken prior to the date hereof. The Note, as

executed and delivered by the Company, constitutes valid and binding obligations of the Company, enforceable in accordance with its terms,

except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the

enforcement of creditors' rights generally.

Violations. The execution and delivery of this Note and the consummation and performance by the Company of its obligations contemplated

hereby do not and will not (a) violate any provision of Company’s organizational or constitutional documentation (including its

articles of incorporation and by-laws); (b) violate any law or governmental order applicable to the Company or by which any of its properties

or assets may be bound; or (c) constitute a default under any contract, instrument or agreement binding on the Company or its assets or

constitute a default or termination event (however described) under any such contract, instrument or agreement.

11.

Charges, Taxes and Expenses. Issuance of certificates for Ordinary Shares issued upon the

conversion of this Note shall be made without charge to the Holder hereof for any issue or transfer tax or other incidental expense in

respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall

be issued in the name of the Holder or its designee(s).

12.

Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action

or the expiration of any right required or granted herein shall be a Saturday, a Sunday or a legal holiday, then such action may be taken

or such right may be exercised on the next succeeding day that is not a Saturday, Sunday or legal holiday.

13.

Cumulative Rights. No delay on the part of the Holder in the exercise of any power or right

under this Note shall operate as a waiver of any such power or right, nor shall a single or partial exercise of any power or right preclude

other or further exercise of such power or right or the exercise of any other power or right.

14.

Miscellaneous.

(a)            Payment.

All payments under this Note shall be made in lawful tender of the United States.

(b)           Waivers

and Amendments. This Note and the obligations of the Company and the rights of the Holder under this Note may be amended, waived,

discharged or terminated (either generally or in a particular instance, either retroactively or prospectively and either for a specified

period of time or indefinitely) only with the written consent of the Company and the Holder.

Any notice required or permitted by this Note shall be in writing and shall be deemed sufficient when delivered (i) personally, (ii) by

overnight courier, (iii) sent by email or fax (upon customary confirmation of receipt), or (iv) 48 hours after being deposited in the

U.S. mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party’s address or

fax number as set forth on the signature page, as subsequently modified by written notice, or if no address is specified on the signature

page, at the most recent address set forth in the Company’s books and records.

(d)           Severability.

If one or more provisions of this Note are held to be unenforceable under applicable law, such provision(s) shall be excluded from this

Note and the balance of this Note shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance

with its terms.

(e)            Successors

and Assigns. Neither this Note nor any rights hereunder are transferable without the prior written consent of the Company, which the

Company may grant or withhold in its sole discretion. Notwithstanding the foregoing, (i) if the holder is an entity, the Holder shall

be permitted to transfer this Note and/or the Securities to any affiliate of the Holder who executes and delivers an acknowledgement that

such affiliate agrees to be subject to, and bound by, all the terms and conditions of this Note, (ii) if the Holder is an individual,

the Holder may transfer this Note and/or the Securities to a trust established for a direct lineal descendant of the Holder or a similar

vehicle for estate planning purposes and (iii) this Note (and any equity securities issued to Holder upon any conversion of this Note

or any portion hereof) may be transferred by Holder without the consent of the Company from and after the occurrence of an Event of Default.

Subject to the foregoing, the provisions of this Note shall inure to the benefit of, and be binding upon, the successors, assigns, heirs,

executors, and administrators of the Company and the Holder.

(f)            Usury.

In the event any interest is paid on this Note, or a fee that is deemed interest, which is in excess of the then-applicable legal maximum

rate, then that portion of the interest payment representing an amount in excess of the then-applicable legal maximum rate shall be deemed

a payment of principal and applied against the principal of this Note. Notwithstanding any other provision of this Note or any document

contemplated herein to the contrary, in no event shall any provision require the payment or permit the collection of interest or other

amounts in an amount or at a rate in excess of the amount or rate that is permitted by applicable law or in an amount or at a rate that

would result in the receipt by the Holder of interest at a criminal rate, as the terms “interest” and “criminal rate”

are defined under the laws of the State of New York. If from any circumstance whatsoever, fulfilment of any provision of any provision

would result in exceeding the highest rate or amount permitted by applicable law for the collection or charging of interest, the obligation

to be fulfilled shall be reduced to reflect the highest permitted rate or amount. If from any circumstance the Holder shall ever receive

anything of value as interest or deemed interest under the Note or any other document contemplated herein that would result in exceeding

the highest lawful rate or amount of interest permitted by applicable law, the amount that would be excessive interest shall be applied

to the reduction of the Principal Amount, and not to the payment of interest, or if the excessive interest exceeds the unpaid Principle

Amount balance, the amount exceeding the unpaid balance shall be refunded to the Company. In determining whether or not the interest paid

or payable under any specified contingency exceeds the highest lawful rate, the Company and the Holder shall, to the maximum extent permitted

by applicable law, (i) characterize any non principal payment as an expense, fee or premium rather than as interest, (ii) exclude voluntary

prepayments and their effects, (iii) amortize, prorate, allocate and spread the total amount of interest throughout the term of the applicable

loan so that interest does not exceed the maximum amount permitted by applicable law, and/or (iv) allocate interest between portions of

the Obligations to the end that no portion shall bear interest at a rate greater than that permitted by applicable law.

(g)            Titles

and Subtitles. The titles of the paragraphs and subparagraphs of this Note are for convenience of reference only and are not to be

considered in construing this Note.

(h)            Construction.

The language used in this Note will be deemed to be the language chosen by the parties to express their mutual intent and no rules of

strict construction will be applied against any party.

(i)             Expenses.

The Company and the Holder shall each bear its respective expenses and legal fees incurred with respect to this Note and the transactions

contemplated hereby. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced

through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions

of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or one of its subsidiaries or other proceedings

affecting Company or one of its subsidiaries’ creditors’ rights and involving a claim under this Note, then the Company shall

pay the reasonable costs incurred by Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization,

receivership or other proceeding, including, but not limited to, reasonable attorneys’ fees and disbursements.

(j)             Counterparts.

This Note may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

Any counterpart delivered electronically by PDF transmission, by facsimile or using an electronic signature service (such as DocuSign)

shall be binding to the same extent as an original counterpart with regard to any agreement subject to the terms hereof or any amendment

thereto.

(k)            Governing

Law. This Note and all actions arising out of or in connection herewith or therewith shall be governed by and construed in accordance

with the laws of the State of New York, without regard to the conflicts of law provisions of the State of New York or of any other state,

country or jurisdiction.

This Convertible

Promissory Note is executed by duly authorized representatives of the below signatories.

FERROX CRITICAL MINERALS

By:

Name: Terrence P. Duffy

Title: Chairman and CEO

Agreed and accepted:

SMARTKEM, INC.

By:

Name: Barbra Keck

Title:   Chief Financial Officer

XML — IDEA: XBRL DOCUMENT

XML

Filename: R1.htm · Sequence: 7

v3.26.1

Cover

Jun. 22, 2026

Cover [Abstract]

Document Type

8-K

Amendment Flag

false

Document Period End Date

Jun. 22, 2026

Entity File Number

001-42115

Entity Registrant Name

SmartKem, Inc.

Entity Central Index Key

0001817760

Entity Tax Identification Number

85-1083654

Entity Incorporation, State or Country Code

Entity Address, Address Line One

3 Germay Drive

Entity Address, Address Line Two

Unit 4 #1029

Entity Address, City or Town

Wilmington

Entity Address, Country

Entity Address, Postal Zip Code

19804

Written Communications

false

Soliciting Material

false

Pre-commencement Tender Offer

false

Pre-commencement Issuer Tender Offer

false

Title of 12(b) Security

Common Stock, par value $0.0001 per share

Trading Symbol

SMTK

Security Exchange Name

NASDAQ

Entity Emerging Growth Company

true

Elected Not To Use the Extended Transition Period

false

- Definition

Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.

+ References

No definition available.

+ Details

Name:

dei_AmendmentFlag

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Cover page.

+ References

No definition available.

+ Details

Name:

dei_CoverAbstract

Namespace Prefix:

dei_

Data Type:

xbrli:stringItemType

Balance Type:

Period Type:

duration

- Definition

For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.

+ References

No definition available.

+ Details

Name:

dei_DocumentPeriodEndDate

Namespace Prefix:

dei_

Data Type:

xbrli:dateItemType

Balance Type:

Period Type:

duration

- Definition

The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.

+ References

No definition available.

+ Details

Name:

dei_DocumentType

Namespace Prefix:

dei_

Data Type:

dei:submissionTypeItemType

Balance Type:

Period Type:

duration

- Definition

Address Line 1 such as Attn, Building Name, Street Name

+ References

No definition available.

+ Details

Name:

dei_EntityAddressAddressLine1

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Address Line 2 such as Street or Suite number

+ References

No definition available.

+ Details

Name:

dei_EntityAddressAddressLine2

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the City or Town

+ References

No definition available.

+ Details

Name:

dei_EntityAddressCityOrTown

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

ISO 3166-1 alpha-2 country code.

+ References

No definition available.

+ Details

Name:

dei_EntityAddressCountry

Namespace Prefix:

dei_

Data Type:

dei:countryCodeItemType

Balance Type:

Period Type:

duration

- Definition

Code for the postal or zip code

+ References

No definition available.

+ Details

Name:

dei_EntityAddressPostalZipCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityCentralIndexKey

Namespace Prefix:

dei_

Data Type:

dei:centralIndexKeyItemType

Balance Type:

Period Type:

duration

- Definition

Indicate if registrant meets the emerging growth company criteria.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityEmergingGrowthCompany

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Indicate if an emerging growth company has elected not to use the extended transition period for complying with any new or revised financial accounting standards.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 7A

-Section B

-Subsection 2

+ Details

Name:

dei_EntityExTransitionPeriod

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

+ References

No definition available.

+ Details

Name:

dei_EntityFileNumber

Namespace Prefix:

dei_

Data Type:

dei:fileNumberItemType

Balance Type:

Period Type:

duration

- Definition

Two-character EDGAR code representing the state or country of incorporation.

+ References

No definition available.

+ Details

Name:

dei_EntityIncorporationStateCountryCode

Namespace Prefix:

dei_

Data Type:

dei:edgarStateCountryItemType

Balance Type:

Period Type:

duration

- Definition

The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityRegistrantName

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityTaxIdentificationNumber

Namespace Prefix:

dei_

Data Type:

dei:employerIdItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 13e

-Subsection 4c

+ Details

Name:

dei_PreCommencementIssuerTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14d

-Subsection 2b

+ Details

Name:

dei_PreCommencementTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Title of a 12(b) registered security.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b

+ Details

Name:

dei_Security12bTitle

Namespace Prefix:

dei_

Data Type:

dei:securityTitleItemType

Balance Type:

Period Type:

duration

- Definition

Name of the Exchange on which a security is registered.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection d1-1

+ Details

Name:

dei_SecurityExchangeName

Namespace Prefix:

dei_

Data Type:

dei:edgarExchangeCodeItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14a

-Subsection 12

+ Details

Name:

dei_SolicitingMaterial

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Trading symbol of an instrument as listed on an exchange.

+ References

No definition available.

+ Details

Name:

dei_TradingSymbol

Namespace Prefix:

dei_

Data Type:

dei:tradingSymbolItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 230

-Section 425

+ Details

Name:

dei_WrittenCommunications

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration