other material
confidence high
sentiment neutral
materiality 0.60
SmartKem provides $2.3M bridge loan to Ferrox Critical Minerals with conversion rights
SmartKem, Inc.
- $2.3M convertible promissory note to Ferrox; 5% interest, matures Oct 30, 2026.
- Conversion price: lower of fair market value or based on $80M total equity value of Ferrox.
- Company received $200,000 origination fee; default interest rises to 15% with $4,500/day fee.
- SmartKem granted right of first refusal on Ferrox fundamental transactions and exclusivity through maturity.
- Negative covenants restrict Ferrox from dividends, asset sales, affiliate deals without consent.