Smartkem Receives £900,000 Grant from Innovate UK for Advanced MicroLED Displays

Rhea-AI Summary

Smartkem (SMTK) has secured a £900,000 (USD 1.1 million) grant from Innovate UK for developing rollable, transparent microLED displays in collaboration with AUO. The project, part of the 2024 UK-Taiwan Collaborative R&D Initiative, will span two years starting January 1, 2025. Initial grant payments are scheduled to begin in Q1 2025. The company, which specializes in organic thin-film transistors (OTFTs), aims to advance its display technology through this partnership.

Positive

• Secured £900,000 (USD 1.1 million) non-dilutive funding through government grant
• Strategic partnership with established display manufacturer AUO

Negative

• Project benefits won't materialize until 2025
• R&D project outcomes and commercial viability remain uncertain

Insights

Financial Analyst

The £900,000 ($1.1 million) grant represents a significant development for Smartkem, particularly given its micro-cap status with a market cap of just $4.5 million. The funding will bolster the company's R&D capabilities without diluting shareholders, providing important capital for the AUO partnership focused on next-generation display technology. The collaboration with AUO, a major display manufacturer, adds credibility to Smartkem's OTFT technology and could lead to commercial applications. However, with project commencement in 2025 and a 2-year timeline, meaningful revenue impact is still distant. The grant provides important runway but doesn't address immediate commercialization challenges.

Tech Expert

The development of rollable, transparent microLED displays represents cutting-edge technology in the display industry. Smartkem's organic thin-film transistors (OTFTs) could be revolutionary if successfully commercialized, offering advantages in flexibility and transparency that traditional silicon-based transistors cannot match. The partnership with AUO, a tier-one display manufacturer, validates the technology's potential. The UK-Taiwan initiative backing suggests strategic importance in the semiconductor and display technology space. This project could position Smartkem at the forefront of next-generation display technology, though technical challenges in scaling and manufacturing remain to be addressed.

Project in partnership with AUO starts on January 1, 2025

MANCHESTER, England, Dec. 18, 2024 /PRNewswire/ -- Smartkem (Nasdaq: SMTK), which is seeking to change the world of electronics using its disruptive organic thin-film transistors (OTFTs), has received and accepted a £900,000 (USD 1.1 million) grant from Innovate UK for its previously announced project partnership with AUO to develop a rollable, transparent microLED display. Part of the 2024 UK-Taiwan Collaborative R&D Initiative, the 2-year project will commence on January 1, 2025, with initial grant payments beginning in the first quarter of 2025.

About the 2024 UK-Taiwan Collaborative R&D Initiative

The 2024 UK-Taiwan Collaborative R&D Initiative has invested more than £10 million this year to promote bilateral industrial technology research and development cooperation. The nine award-winning projects will promote the joint development of advanced technologies in fields such as electrical information communication, biomedicine, and electromechanical by Taiwan-UK enterprises.

About Smartkem

Smartkem is seeking to reshape the world of electronics with its disruptive organic thin-film transistors (OTFTs) that have the potential to revolutionize the display industry.  Smartkem's patented TRUFLEX® liquid semiconductor polymers can be used to make a new type of transistor that can be used in a number of display technologies, including next generation microLED displays. Smartkem's organic inks enable low temperature printing processes that are compatible with existing manufacturing infrastructure to deliver low-cost displays that outperform existing technology.

Smartkem develops its materials at its research and development facility in Manchester, UK and provides prototyping services at the Centre for Process Innovation (CPI) at Sedgefield, UK. It has a field application office in Taiwan. The company has an extensive IP portfolio including 138 granted patents across 18 patent families, 16 pending patents and 40 codified trade secrets. For more information, visit: www.Smartkem.com and follow us on LinkedIn http://www.linkedin.com/company/Smartkem-limited.

Forward-Looking Statements

All statements in this press release that are not historical are forward-looking statements, including, among other things, its market position and market opportunity, expectations and plans as to its product development, manufacturing and sales, and relations with its partners and investors. These statements are not historical facts but rather are based on Smartkem Inc.'s current expectations, estimates, and projections regarding its business, operations and other similar or related factors. Words such as "may," "will," "could," "would," "should," "anticipate," "predict," "potential," "continue," "expect," "intend," "plan," "project," "believe," "estimate," and other similar or elated expressions are used to identify these forward-looking statements, although not all forward-looking statements contain these words. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company's control. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.

Contacts:
Selena Kirkwood
Head of Communications for Smartkem
T: +44 (0) 7971 460 364
s.kirkwood@smartkem.com

U.S. Investors
David Barnard, CFA
Alliance Advisors Investor Relations
T: 1 415 433 3777
dbarnard@allianceadvisors.com

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SOURCE Smartkem

FAQ

How much is the Innovate UK grant awarded to Smartkem (SMTK)?

Smartkem (SMTK) has been awarded a £900,000 (USD 1.1 million) grant from Innovate UK.

When will Smartkem's (SMTK) microLED display project with AUO begin?

The project will commence on January 1, 2025, with initial grant payments beginning in Q1 2025.

What is the duration of Smartkem's (SMTK) Innovate UK funded project?

The project is scheduled to run for 2 years, starting from January 1, 2025.

What technology is Smartkem (SMTK) developing with the Innovate UK grant?

Smartkem is developing rollable, transparent microLED displays using their organic thin-film transistors (OTFTs) technology.

Which company is Smartkem (SMTK) partnering with for the microLED display project?

Smartkem is partnering with AUO for the development of rollable, transparent microLED displays.