SmartKem shares surge 25.00% premarket after converting $2M payables into equity, reducing debt and strengthening balance sheet.

think> Okay, let's tackle this query step by step. The user wants me to act as a financial analyst explaining the stock price movement of SmartKem based on recent news events. First, I need to parse the input. The stock is up 25% in premarket trading. The recent news includes a debt conversion agreement where $2M in payables was converted into equity at $2.75 per share. There's also another news about E.F. Hutton being an M&A advisor, but the content is missing. The other news are older and don't seem directly related to the recent spike. Next, I need to determine which news events are relevant. The first two reasons (Reason 1 and 2) detail the same event—converting debt to equity. This is significant because it reduces the company's liabilities without using cash, which should improve the balance sheet and reduce future cash needs. The third reason (Reason 3) mentions an M&A advisor for a proposed acquisition, but there's no content provided, so it's unclear. The fourth reason is a list of past news but nothing recent that could explain the 25% jump. The stock movement is a 25% increase in premarket. The key event here is the debt conversion. The company is removing $2M in payables, which is a positive for the balance sheet and cash flow. Investors might be reacting to the improved financial position and the fact that no cash was paid out, preserving liquidity. The conversion price of $2.75 could also indicate that the stock is seen as having value above that, leading to optimism. I need to check if there's any conflicting news. The M&A advisor news (Reason 3) is about a proposed acquisition, but since there's no content, it's not actionable. The other news items are older and don't relate to the recent premarket move. So the primary driver is the debt conversion. Now, structuring the explanation. The stock surged 25% in premarket. The main cause is the debt conversion into equity, reducing payables and cash needs. The explanation should mention the transaction's impact on the balance sheet and why investors are optimistic. Need to keep it concise, under 150 words, using professional tone similar to Bloomberg. Also, ensure that the percentage is rounded to two decimal places (25.0% becomes 25.00%, but since the example shows 4.23, but in the input it's 25.0%, so probably just 25.0% as given, but the user says to round to two decimals and remove trailing zeros. Wait, the input says "25.0%", so rounding to two decimals would be 25.00%, but the example shows 4.23% from a longer decimal. But the user says to round to two decimal places and remove trailing zeros. So 25.0% becomes 25.00% but then remove trailing zeros, so it's 25%. Wait, the example input had "4.230769%" and the output was "4.23%". So in this case, the input is 25.0%, so rounding to two decimals would be 25.00%, but trailing zeros can be removed, so it becomes 25%. But the user says "round 25.0% to two decimal places and remove trailing zeros". So 25.0% becomes 25.00% then remove trailing zeros to 25%. But the example shows 4.23% which is two decimals. So maybe in the output, it's 25.00% but the instruction says to remove trailing zeros. Hmm, maybe the user wants to keep two decimal places even if there are zeros. But the example shows 4.23% which is two decimals. So perhaps the user wants two decimal places regardless. The input here is 25.0%, so 25.00% as two decimals. However, in the example, the input was "4.230769%" and the output is "4.23%". So the user wants two decimal places. So in this case, 25.0% should be 25.00% but since the instruction says to round and remove trailing zeros, maybe it's 25.0%. Wait, the instruction says "Round 25.0% to two decimal places and remove trailing zeros." So 25.0% is already one decimal. Rounding to two decimals would be 25.00%, but removing trailing zeros would make it 25.0%. But in the example, they had 4.230769% and output 4.23%, so two decimals. So perhaps the user wants two decimal.