SmartKem, Inc. Regains Compliance with Nasdaq Equity Listing Rule; Remains Under Panel Monitoring

Key Highlights:

• SmartKem, Inc. (Nasdaq: SMTK) has regained compliance with the stockholders’ equity requirement under Nasdaq Listing Rule 5550(b)(2).
• The company has demonstrated compliance with all other applicable criteria for continued listing on the Nasdaq Capital Market.
• SmartKem remains subject to a grace period, through September 1, 2026, to regain compliance with the minimum bid price requirement under Nasdaq Listing Rule 5550(a)(2).
• The company will be under a one-year Discretionary Panel Monitor as per Nasdaq Listing Rule 5815(d)(4)(A).

Detailed Summary for Investors

On April 21, 2026, SmartKem, Inc. announced that it has received formal notification from the Nasdaq Hearings Panel confirming that the company has regained compliance with the equity requirements for continued listing on the Nasdaq Capital Market. Specifically, SmartKem now meets the stockholders’ equity requirement set forth in Nasdaq Listing Rule 5550(b)(2), which is a key financial metric for maintaining a U.S. exchange listing.

The company has also satisfied all other Nasdaq criteria for continued listing, which is a positive development for shareholders as it reduces the near-term risk of delisting and the associated volatility or loss of liquidity that could negatively affect the company’s share price.

However, there is an important caveat: SmartKem is still subject to a grace period that extends through September 1, 2026, during which it must regain compliance with the minimum bid price requirement (Nasdaq Listing Rule 5550(a)(2)). This rule generally requires a minimum closing bid price of \$1.00 per share. Should the company fail to meet this requirement before the grace period expires, it could again face delisting proceedings.

Furthermore, SmartKem is now subject to a one-year Discretionary Panel Monitor under Nasdaq Listing Rule 5815(d)(4)(A). During this period, if the company falls out of compliance with any continued listing criteria, it will not be allowed to submit a compliance plan or receive a grace period (as would otherwise be typical). Instead, the Nasdaq Listing Qualifications Staff would issue a delist determination immediately. The company can appeal such a determination by requesting a hearing before a Panel, and such a request would generally stay any further suspension or delisting action until the hearing process concludes.

Potential Price Sensitive Implications:

• Regaining compliance with the Nasdaq stockholders’ equity requirement is a positive signal for investors, as it removes a significant overhang and risk of near-term delisting.
• However, the ongoing risk regarding the bid price requirement and the stricter one-year Panel Monitor means that the company’s shares may remain volatile. Any failure to maintain compliance could result in accelerated delisting proceedings, which typically leads to a sharp decline in share value due to liquidity concerns and reputational risk.
• Shareholders should closely monitor the company’s share price performance and quarterly financial health, as these will be critical to maintaining Nasdaq listing status.

The company’s common stock, par value \$0.0001 per share, trades on the Nasdaq Capital Market under the symbol SMTK.

Other Information:

• Company Name: SmartKem, Inc.
• Address: Manchester Technology Center, Hexagon Tower, Delaunays Road, Blackley, Manchester, M9 8GQ, United Kingdom
• SEC File Number: 001-42115
• Tax Identification Number: 85-1083654
• Emerging Growth Company: SmartKem qualifies as an Emerging Growth Company, which may afford it certain regulatory relief and flexibility.
• Board and Management: The filing was signed by Barbra C. Keck, Chief Financial Officer, on April 23, 2026.

Disclaimer

This article is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions. The information herein is based on the most recent filings and may be subject to change or updates not reflected in this summary.

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