Smartkem, Jericho Energy Ventures extend LOI for merger

Smartkem (SMTK) has agreed to a 60-day extension of its non-binding Letter of Intent, or LOI, for a proposed all-stock business combination with Jericho Energy Ventures (JROOF). The amendment to the LOI also extends the deadline by which Smartkem is required to invest in Jericho to prevent Jericho from having the right to terminate the LOI to December 31, 2025. The other terms of the LOI remain unchanged. If completed, the transaction would establish a Nasdaq-listed, U.S.-owned and controlled AI infrastructure company that integrates low-cost domestic energy with advanced semiconductor packaging and materials to support the demand for AI compute capacity. The LOI is non-binding, and there can be no assurance that the proposed transaction will be consummated. Both Smartkem and Jericho will need significant additional capital to complete the negotiation of the proposed transaction, obtain any required stockholder approvals and ultimately complete the transaction.