SmartKem, Inc., a semiconductor and related devices manufacturer, conducted its 2024 annual meeting of stockholders today, where two key proposals were voted on by its shareholders.
The Delaware-incorporated company, which is listed on The Nasdaq Stock Market LLC under the ticker SMTK, reported the election of directors and the ratification of its independent auditor through a recent 8-K filing with the Securities and Exchange Commission.
The first proposal at the annual meeting involved the election of Class III directors. Ian Jenks and Melisa Denis were elected to serve three-year terms expiring at the 2027 annual meeting. The voting results were as follows: Ian Jenks received 501,449 votes for and 4,573 votes withheld; Melisa Denis garnered the same number of votes for and votes withheld as Mr. Jenks. There were 181,009 broker non-votes for each candidate.
In the second proposal, shareholders approved the ratification of Marcum LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2024. The approval was based on a vote count of 668,565 for, 18,466 against, and no abstentions.
The annual meeting was held following the detailed description of the proposals in the company's definitive proxy statement filed on August 22, 2024. The results of the meeting are expected to influence the company's governance and financial oversight for the upcoming year. SmartKem, previously known as Parasol Investments Corp before a name change on July 10, 2020, is headquartered at the Manchester Technology Center in the United Kingdom.
In other recent news, Smartkem, a developer of organic thin-film transistors, has entered into a joint development agreement with Shanghai Chip Foundation Semiconductor Technology Co., Ltd., known as Chip Foundation, to co-develop new microLED backlight technology for Liquid Crystal Displays.
This partnership is expected to enhance the performance of LCDs by integrating Smartkem’s organic dielectric single layer material with Chip Foundation’s microLED devices. The agreement outlines that Smartkem will supply its Redistribution Layer material to Chip Foundation, which will be used in conjunction with Chip Foundation’s proprietary microLED devices.
Furthermore, Smartkem has been active on the executive compensation front, awarding one-time special bonuses to key executives, including Chief Scientist Beverley Brown and Chief Technology Officer Simon Ogier, each receiving a bonus of $32,110. CEO Ian Jenks received options to purchase 181,000 shares and a cash bonus of $26,767, while CFO Barbra Keck was awarded options for 100,000 shares and a cash bonus of $45,000. Ogier and Brown were also granted options for 49,000 shares each.
In addition to these developments, Smartkem has scheduled its 2024 annual meeting of stockholders for September 23, 2024. Stockholders on record as of August 19, 2024, will be entitled to vote at the meeting.
InvestingPro Insights
In the context of SmartKem, Inc.'s recent annual meeting and the company's future outlook, certain metrics and insights from InvestingPro are worth considering. As of the last twelve months leading up to Q2 2024, SmartKem holds a market capitalization of $8.64 million and has exhibited a substantial revenue growth rate of 43.33%. This growth is further highlighted by a staggering quarterly revenue increase of 400%. Despite these growth figures, the company's profitability remains a concern, with a negative P/E ratio of -0.88, indicating that it is not currently generating net income.
InvestingPro Tips suggest that SmartKem has been aggressively buying back shares and holds more cash than debt, which could be an indicator of a solid balance sheet. Additionally, the company has a high shareholder yield, which may appeal to investors looking for potential returns. However, it is important to note that SmartKem does not pay dividends to shareholders, and analysts anticipate a sales decline in the current year. For those considering an investment in SmartKem, there are over 15 additional InvestingPro Tips available, which provide deeper insights into the company's financial health and market position.
The company's stock price has been highly volatile, as evidenced by a one-year price total return of 229.1%, yet it has taken a significant hit in the last six months with a price total return of -55.53%. Investors should be aware of the high volatility when considering stock performance. The InvestingPro Fair Value estimation of $3.79 also suggests that the stock may be currently overvalued, given its previous close price of $4.94. For those interested in the semiconductor industry and considering an investment in SmartKem, the additional context provided by these metrics and tips could be invaluable.
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