Announcement • Mar 12
SmartKem, Inc. Announces Non-Compliance with Nasdaq Minimum Bid Price Rule
On March 5, 2026, SmartKem, Inc. (the Company) received notice (the Notification Letter) from the staff (the Staff) of The Nasdaq Stock Market LLC (Nasdaq) that it is not in compliance with the minimum bid price requirement set in Nasdaq Listing Rule 5550(a)(2) (the Minimum Bid Price Rule) for continued listing on The Nasdaq Capital Market. Nasdaq Listing Rule 5550(a)(2) requires listed securities to maintain a minimum bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's common stock between January 21, 2026, and March 4, 2026, the Company no longer meets the minimum bid price requirement. The Notification Letter has no immediate effect on the listing or trading of the Company's common stock on The Nasdaq Capital Market and, at this time, the common stock will continue to trade on The Nasdaq Capital Market under the symbol "SMTK," subject to the pending hearing discussed more fully below. The Notification Letter provides that the Company has 180 calendar days, or until September 1, 2026, to regain compliance with Nasdaq Listing Rule 5550(a)(2). To regain compliance, the bid price of the Company's common stock must have a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days. If the Company does not regain compliance by September 1, 2026, an additional 180 days may be granted to regain compliance, so long as the Company meets The Nasdaq Capital Market initial listing requirement of $5 million in stockholders' equity and all other continued listing requirements (except for the bid price requirement) and notifies Nasdaq in writing of its intention to cure the deficiency during the second compliance period. As noted below, the Company currently has less than $5 million in stockholders' equity; however, the determination on eligibility for a second bid price grace period will not be made until the first bid price grace period expires. If the Company does not qualify for the second compliance period or fails to regain compliance during the second 180-day period, then Nasdaq will notify the Company of its determination to delist the Company's common stock, at which point the Company will have an opportunity to request a hearing before an independent Hearings Panel. The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse stock split of its outstanding securities, to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules. In addition, as previously reported in a Current Report on Form 8-K. on February 12, 2026, the Company received notice that based upon the Company's continued non-compliance with the Nasdaq Listing Rule 5550(b) (the Equity Rule), the Staff has determined to delist the Company's securities from Nasdaq unless the Company timely requested a hearing before the Hearings Panel. The Company timely requested a hearing, which stayed the delisting and suspension of the Company's securities pending the decision of the Hearings Panel. There can be no assurance that the Company will be able to evidence compliance with the Equity Rule or other applicable requirements for continued listing on The Nasdaq Capital Market prior to the hearing or that the Panel will grant the Company a further extension period in accordance with the Nasdaq Listing Rules. There can be no assurance that the Hearings Panel will grant the Company any extension period within which to regain compliance with the Equity Rule, or if any such extension period is granted, that the Company will regain compliance with the Equity Rule within such extension period, or that the Company will be successful in otherwise maintaining the listing of its common stock on The Nasdaq Capital Market.
