Smartkem and Jericho Energy Ventures have signed a non-binding Letter of Intent (LOI) to pursue an all-stock merger towards forming a new US-based AI infrastructure company.

Under the LOI, organic semiconductor manufacturer Smartkem would merge with energy firm Jericho to create a company that would focus on developing low-cost, energy-efficient infrastructure to support the growing demand for AI data centers across the US.

The companies claim that the merger would bring together Jericho’s expertise in energy generation with Smartkem’s organic thin-film transistor (OTFT) technology to improve the performance and sustainability of AI computing infrastructure.

According to Smartkem, its OTFT transistors utilize materials processed at a uniquely low temperature, enabling them to be manufactured on large panels of flexible, transparent, and low-cost plastic.

The companies said that the integration could enable energy-efficient data centers, next-generation AI chip packaging, low-power optical data transfer, and flexible sensors for monitoring and operational resilience.

“AI infrastructure represents one of the largest build-outs in modern technology,” said Ian Jenks, Smartkem’s chairman and CEO. “This partnership creates a pathway for our materials to reach commercial scale in next-generation computing.”

Jericho CEO Brian Williamson added that combining energy systems with semiconductor innovation could deliver “faster, cleaner, and more resilient” AI facilities.

If the companies proceed with the merger, it will be completed as an all-stock business combination, with Smartkem as the surviving entity and continuing to trade on the Nasdaq stock exchange. Upon completion, Jericho shareholders would own 65 percent of the new company, while Smartkem investors would hold 35 percent. Williamson is expected to lead the combined firm as CEO, with a reconstituted board featuring a majority of Jericho appointees.

The LOI includes a 60-day exclusivity period to finalize terms. Smartkem is also required to purchase at least $500,000 worth of Jericho shares by November 30, 2025, depending on its financial position and capital raises. Both companies cautioned that the deal remains subject to due diligence, shareholder approval, regulatory clearance, and Nasdaq listing requirements.

Jericho already has interests within the data center sector, having launched a modular data center business earlier this year. The venture aims to utilize its natural gas assets as the foundation for developing AI-specific modular data centers.

Founded in 2010, Jericho is based in Vancouver, British Columbia, Canada. In addition to its natural gas assets, the firm has invested across the energy landscape, including several subsidiaries. These include Hydrogen Technologies, which is building a zero-emission boiler, and Etna Solutions, a developer of an alkaline-based electrolyzer system.

Founded in 2009 and headquartered in Manchester, UK, Smartkem is a semiconductor manufacturer that focuses on the development of semiconductor polymer transistors.