SmartKem shares surge 30.14% premarket after converting $2M payables to equity at $2.75 per share.

SmartKem surged 30.14% in premarket trading following the announcement of a debt conversion agreement that converted $2.0 million in accounts payable into equity at $2.75 per share. The transaction eliminated the company’s obligations without cash outlay, strengthening its balance sheet and reducing ongoing cash requirements. The move was framed as a strategic financial improvement, with no registered securities and a private transaction structure. While E.F. Hutton’s role as M&A advisor for a proposed acquisition was noted, no specifics were provided to directly correlate with the stock’s movement. Older news, including IP expansions and partnerships, lacked immediacy to explain the premarket rally. The debt restructuring’s immediate liquidity benefits and perceived risk mitigation likely drove the sharp premarket increase.