Klaas de Boer - 22 Jun 2023 Form 4 Insider Report for SmartKem, Inc. (SMTK)

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	SMTK	Series A-2 Convertible Preferred Stock	Purchase	$50,000	+50		$1000.00^*	50	22 Jun 2023	Common Stock	200,000	$0.2500	By Spouse	F1, F2
transaction	SMTK	Common Stock Warrants (right to buy)	Purchase		+200,000			200,000	22 Jun 2023	Common Stock	200,000	$0.2500	By Spouse	F3

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Id	Content
F1	The Issuer issued its Series A-2 Convertible Preferred Stock (the "Preferred Stock"), at a stated value equal to $1,000 per share. Pursuant to the terms of the Preferred Stock, each share of Preferred Stock is convertible into shares of the Issuer's common stock, par value $0.0001 per share ("Common Stock"), at the election of the holder, at any time following the original issue date at a price of $0.25 per share, subject to price-based anti-dilution adjustments which, if triggered, would result in additional shares of Common Stock being issued upon conversion of the Preferred Stock. The Preferred Stock does not have an expiration date.
F2	The purchase was made in a private transaction with the Issuer that closed on June 22, 2023.
F3	The warrants were included together with the purchase of the Preferred Stock. Each warrant entitles the holder thereof to purchase one share of Common Stock at an exercise price of $0.25 per share, subject to adjustment. The warrants are currently exercisable and will expire on June 22, 2028.