This is a distressed financing at punitive terms — $12M in debt against a $1M market cap with aggressive redemption rights, trigger-based balance increases, and severe restrictions on future financing. The $10M B Note is essentially cash-collateralized, meaning the company only gets $2M in free cash flow. Monitor for early trigger events (delisting risk, judgment >$250K) that could accelerate the full balance. The stock is likely to face significant selling pressure as Streeterville can demand monthly redemptions starting month 6.
Price Chart
Executive Summary
Edible Garden AG issued $12M in notes to Streeterville Capital ($2.17M unsecured A-1 Note at 8% interest with $160K OID, and $10M secured B Note at 5% interest backed by a cash deposit account and subsidiary guarantees). The A-1 Note carries a monitoring fee and monthly redemption rights starting at month 6, while the B Note is secured by cash held at Lakeside Bank and can be exchanged for additional A Notes as principal is reduced. The filing creates a significant new debt obligation for a micro-cap company with a $1M market cap, raising severe dilution and default risk concerns.
Key Financial Metrics
Key Facts
- Company issued $2,170,000 A-1 Note (8% interest, 18-month maturity) and $10,000,000 B Note (5% interest, 18-month maturity) to Streeterville Capital
- Net cash proceeds to company: $2,000,000 from A-1 Note ($160K OID + $10K expenses); $10,000,000 from B Note held in deposit account at Lakeside Bank
- B Note is secured by cash in deposit account, pledge of EDBL Holdings equity, and guarantees from three subsidiaries
- A-1 Note carries a monitoring fee (Outstanding Balance / 0.90 - Outstanding Balance) added at 90 days if still outstanding
- Monthly redemption rights begin at month 6: up to $100,000/month on A-1 Note; limited redemption rights up to 10% of daily dollar trading volume when stock trades >10% above Nasdaq Minimum Price
- Trigger events include failure to pay, bankruptcy, covenant breach, fundamental transaction without consent, delisting protocol, and judgments >$250,000
- Trigger effect allows 15% balance increase per major trigger event (capped at 25% aggregate) and 5% per minor trigger event
- Company is restricted from making any 'Restricted Issuance' (variable-rate convertible debt, reset-price securities) without investor consent
- Company market cap is approximately $1M; total debt from this filing ($12M face value) is 12x market cap
- Recent insider buying of $263K over 30 days by 4 insiders
Financial Impact
New debt of $12M face value ($12.17M including OID and expenses) against a $1M market cap company. Net cash to company is $2M from A-1 Note; $10M is held in a restricted deposit account as collateral for the B Note.
Risk Factors
- Total debt ($12M face) is 12x market cap ($1M), creating extreme leverage and default risk
- Monthly redemption rights ($100K/month) starting month 6 could drain available cash
- Trigger events (delisting, judgments, covenant breach) allow 15-25% balance increases and immediate acceleration
- Restricted issuance covenant severely limits company's ability to raise additional capital
- Monitoring fee structure adds significant cost if note remains outstanding past 90 days
- B Note exchange mechanism could convert secured B Note into unsecured A Notes, increasing dilution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001477932-26-003846 |
| Document: edbl_ex104.htm | 0001477932-26-003846 |
| Document: edbl_ex102.htm | 0001477932-26-003846 |
| Document: edbl_ex103.htm | 0001477932-26-003846 |
| Document: edbl_8k.htm | 0001477932-26-003846 |
| Document: 0001477932-26-003846-index-headers.html | 0001477932-26-003846 |
| Document: 0001477932-26-003846-index.html | 0001477932-26-003846 |
| Document: 0001477932-26-003846.txt | 0001477932-26-003846 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $0.8511 | awaiting T+20 | — | $0.7376 (−13.34%) |
Oct 6, 2026 21d ago | Press Release | $1.14 | awaiting T+20 | — | $0.7376 (−35.30%) |
Oct 1, 2026 26d ago | 8-K | $1.14 | awaiting T+20 | — | $0.7376 (−35.30%) |
Sep 2, 2026 7w ago | 8-K | $1.49 $1.19 | ▼ −20.13% | ▼ −19.80% | $0.7376 (−50.50%) |
Aug 24, 2026 9w ago | 8-K | $1.41 $1.27 | ▼ −9.93% | ▼ −11.24% | $0.7376 (−47.69%) |
Aug 17, 2026 10w ago | 8-K | $1.56 $1.41 | ▼ −9.62% | ▼ −7.64% | $0.7376 (−52.72%) |
Aug 14, 2026 10w ago | 8-K | $1.67 $1.45 | ▼ −13.17% | ▼ −11.18% | $0.7376 (−55.83%) |
Aug 10, 2026 11w ago | EFFECT | $1.83 $1.42 | ▲ +22.40% | ▲ +21.49% | $0.7376 (+59.69%) |
Aug 7, 2026 11w ago | Press Release | $1.88 $1.39 | ▼ −26.06% | ▼ −25.67% | $0.7376 (−60.77%) |
Aug 3, 2026 12w ago | 8-K | $2.28 $1.46 | ▲ +35.96% | ▲ +37.20% | $0.7376 (+67.65%) |
US Market Status
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