UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 31, 2021

SmartKem, Inc.

(Exact name of registrant as specified in its charter)

Manchester Technology Center, Hexagon Tower

Delaunays Road, Blackley

Manchester, M9 8GQ U.K.

(Address of principal executive offices, including zip code)

011-44-161-721-1514

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act: None

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Cash Bonuses

On March 31, 2021, the Board of Directors (the “Board”) of SmartKem, Inc. (the “Company”), upon recommendation of the Compensation Committee of the Board (the “Committee”), approved discretionary cash bonuses for the Company’s executive officers, Ian Jenks, Chief Executive Officer, Robert Bahns, Chief Financial Officer, Simon Ogier, Ph.D., Chief Technology Officer and Beverley Brown, Ph.D., Chief Scientist, in the amounts set forth in the table below.

Option Grants

On March 31, 2021, the Board, upon recommendation of the Committee, approved equity compensation awards for the Company’s executive officers. The Board approved an award of options (the “Options”) to purchase shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”), in the following amounts: Mr. Jenks was awarded 597,125 Options, Mr. Bahns was awarded 137,648 Options, Mr. Ogier was awarded 186,602 Options and Ms. Brown was awarded 186,601 Options. The Options were granted in accordance with the terms of the Company’s 2021 Equity Incentive Plan and/or the UK Tax-Advantaged Sub-Plan (the “Plan”). The Options have an exercise price of $2.00 and will vest 25% on the one-year anniversary of the grant date and the remainder in equal monthly installments over three years.

Non-Employee Director Compensation Plan

On March 31, 2021, the Board, upon recommendation of the Committee, adopted a non-employee director compensation policy (the “Policy”), pursuant to which each non-employee employee director is entitled to receive an annual cash retainer of $36,000. In addition, each year, each non-employee director is entitled to receive (i) options to purchase 18,000 shares of Common Stock, which will vest 25% on the one-year anniversary of the grant date and the remainder in equal monthly installments over three years and (ii) options to purchase 6,000 shares of Common Stock, which will vest on the one-year anniversary of the grant date. All equity awards granted pursuant to Policy are subject to the terms and conditions of the Plan.

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.