SmartKem, Inc. and Jericho Energy Ventures Inc. announced a 60‑day extension of their non‑binding Letter of Intent, moving the deadline for SmartKem’s investment to December 31, 2025. The extension keeps the parties on track to negotiate a definitive all‑stock merger that would combine SmartKem’s TRUFLEX semiconductor polymers with Jericho’s on‑site natural‑gas‑powered energy platform, creating a U.S.‑owned, Nasdaq‑listed AI infrastructure company.
The merger is designed to address the growing demand for power‑efficient AI data centers. SmartKem’s low‑temperature printing technology enables high‑performance chip packaging, while Jericho’s energy platform delivers cost‑effective, on‑site power. Together, the companies aim to offer a vertically integrated solution that could reduce operating costs for AI workloads and accelerate deployment of next‑generation data centers.
SmartKem’s Q3 2025 financials show revenue of $81,000, a 103% increase from $40,000 in Q3 2024, driven by sales of OTFT backplanes and TRUFLEX materials for customer assessment and development. Operating expenses rose to $2 million from $1.5 million, contributing to a $3.1 million loss from operations and a $3.92 million net loss. Cash and cash equivalents stood at $0.9 million as of September 30, 2025, down from $7.1 million at the end of 2024, underscoring the company’s need for additional capital.
Jericho Energy Ventures reported a 2024 revenue of $11,138, a steep decline of 84.74% from $73,000 in 2023, and a loss of $7.27 million, only slightly lower than the previous year. Q2 2025 net income was –$2.81 million CAD. The company’s financials reflect a challenging environment for energy‑focused AI infrastructure providers, with declining revenue and persistent losses.
Ian Jenks, Chairman and CEO of SmartKem, said, “We are pleased to extend the LOI as both teams are committed to working toward a transaction that could unlock meaningful value across the rapidly converging energy and AI sectors. We believe the opportunity to integrate SmartKem’s world‑class semiconductor materials with JEV’s scalable energy platform represents a compelling strategic path forward.” Brian Williamson, CEO of Jericho Energy Ventures, added, “Extending the LOI reflects the continued enthusiasm between JEV and SmartKem to progress with the proposed merger to create a U.S.-owned AI infrastructure company that brings together JEV’s energy innovation and SmartKem’s semiconductor capabilities. We look forward to discussions toward a definitive agreement.” Anthony Amato, SmartKem’s strategic advisor, noted, “This extension indicates the significant potential that both parties see in combining the complementary capabilities of JEV’s energy platform with SmartKem’s semiconductor technology to meet the power and performance needs of next‑generation AI infrastructure.”
The announcement was well received by investors, reflecting confidence in the potential synergy between the two companies. The extension signals that both parties remain committed to pursuing the merger, despite the significant capital requirements and regulatory approvals that remain pending. Investors view the combined entity as positioned to capture growth in the AI infrastructure market, where demand for efficient, on‑site power and advanced semiconductor packaging is accelerating.
The LOI remains non‑binding and is subject to due diligence, board and shareholder approvals, continued Nasdaq listing approval, and the negotiation of a definitive agreement. Both companies have acknowledged the need for substantial additional capital to support the transaction and to fund ongoing operations. The parties will continue to work toward closing the deal within the extended deadline, with the goal of creating a U.S.‑owned AI infrastructure company that leverages Jericho’s energy platform and SmartKem’s semiconductor expertise.
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