SmartKem, Inc. (NASDAQ:SMTK), a semiconductor company, has announced the award of stock options to its top executives and the payment of cash bonuses related to the company's recent uplisting to the Nasdaq Capital Market. The Compensation Committee of the Board of Directors approved these equity and cash compensations on Thursday, June 14, 2024.
Ian Jenks, SmartKem's Chief Executive Officer, received options to purchase 181,000 shares, while Chief Financial Officer Barbra Keck was awarded options for 100,000 shares. Chief Technology Officer Simon Ogier, Ph.D., and Chief Scientist Beverley Brown, Ph.D., were each granted options for 49,000 shares. The options have an exercise price of $6.50, matching the closing price of SmartKem's common stock on the grant date. A quarter of these options vested immediately, with the remaining to vest in equal monthly installments over the next three years. Additionally, Jenks received an immediate vesting of options for an additional 16,000 shares.
Alongside the stock options, cash bonuses were also approved for Jenks and Keck, amounting to $26,767 and $45,000 respectively. These bonuses were awarded in recognition of their contributions to the successful uplisting of the company's shares on the Nasdaq Capital Market.
The company, headquartered in Manchester, UK, specializes in semiconductors and related devices, operating under the industrial classification code 3674. SmartKem, previously known as Parasol Investments Corp, changed its name on July 10, 2020, and is incorporated in Delaware.
InvestingPro Insights
In light of SmartKem's recent executive compensation news, a review of the company's financial health and stock performance is essential for shareholders and potential investors. According to InvestingPro data, SmartKem holds a market capitalization of $11.14 million USD, with a notably high negative price-to-earnings (P/E) ratio of -0.84, which further declined over the last twelve months to -1.35. This suggests that the company is not currently profitable, consistent with an InvestingPro Tip highlighting that SmartKem has not been profitable over the last twelve months. Additionally, revenue has significantly decreased by 57.69% during the same period, indicating potential challenges in the company's operations and sales strategy.
InvestingPro Tips also reveal that SmartKem's stock price has been quite volatile, with a sharp decrease of 41.44% in the past month, yet an increase of 61.29% over the last six months. This volatility could be a point of consideration for investors looking for stability. Moreover, the company's valuation implies a poor free cash flow yield, which is another crucial factor for evaluating investment potential. Despite these challenges, SmartKem's liquid assets do exceed its short-term obligations, which could provide some assurance regarding the company's ability to meet its immediate financial liabilities.
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