SmartKem shares surge 13.38% premarket as extended LOI with Jericho aims to form U.S.-owned AI infrastructure company.

SmartKem surged 13.38% in premarket trading following the announcement that it extended its non-binding Letter of Intent (LOI) with Jericho Energy Ventures for a proposed all-stock merger, pushing the investment deadline to December 31, 2025. The extension aims to create a U.S.-owned, Nasdaq-listed AI infrastructure company combining SmartKem’s organic semiconductor materials with Jericho’s energy platform to support next-generation AI data centers. Executive commentary emphasized the strategic potential of the merger to unlock value in the converging energy and AI sectors, despite the LOI remaining non-binding and subject to significant conditions. The market interpreted the extension as a sign of continued progress toward a transaction, driving optimism about the companies’ complementary capabilities.