The $1.5M in Series B Preferred Stock is already issued and non-refundable — this is a sunk cost regardless of the 20-day review outcome. Watch for the company's decision on whether to proceed with closing after the review period ends (approximately October 20, 2026). If the deal closes, the $3.825M note adds significant secured debt to a micro-cap balance sheet with 8% PIK interest that compounds daily. Monitor for any subsequent equity or debt raises needed to fund the facility's build-out.
Price Chart
Executive Summary
Edible Garden AG entered into a Real Estate Purchase Contract to acquire a 6.2-acre property in Webster City, Iowa (its Prairie Hills RTD facility) for a total purchase price of $6,325,000. The consideration is paid entirely to Streeterville Capital via 1,500 Series B Preferred Shares ($1.5M, already issued and non-refundable), an additional 1,000 Series B Preferred Shares at closing ($1M), and a $3.825M secured promissory note (8% PIK interest, 5-year term). The company has a 20-day due diligence period and can walk away for any reason, but the $1.5M in preferred shares is already earned and non-refundable. This transaction converts Edible Garden from tenant to owner of its planned manufacturing hub, but the financing structure — all equity and debt paid to a single lender/creditor — creates significant dilution and leverage for a micro-cap company with no reported revenue or earnings in this filing.
Key Financial Metrics
Key Facts
- Purchase price: $6,325,000 for a 6.2-acre property in Webster City, Iowa (Prairie Hills RTD facility)
- Consideration paid entirely to Streeterville Capital: 1,500 Series B Preferred Shares ($1.5M, already issued and non-refundable), 1,000 Series B Preferred Shares at closing ($1M), and a $3.825M secured promissory note
- Note terms: 8% PIK interest (compounded daily), 5-year maturity, secured by a mortgage on the property, no cash interest payments due for 2 years, then 60-month straight-line amortization
- 20-day due diligence review period for Edible Garden can terminate for any reason, but the $1.5M in preferred shares is already earned and non-refundable
- The property is currently leased by the seller to an Edible Garden affiliate and is being developed as a ready-to-drink manufacturing facility targeting 100+ million units annually
- Streeterville Capital (the same entity receiving all consideration) is the existing mortgage holder on the property and the lender on the new note — the transaction effectively transfers the property from Iowa Shrimp Holdings to Edible Garden while Streeterville's secured position continues
Financial Impact
Total consideration of $6.325M paid via $2.5M in Series B Preferred Stock (already issued $1.5M + $1M at closing) and a $3.825M secured note. The $1.5M in preferred shares is already issued and non-refundable regardless of whether the deal closes.
Risk Factors
- The $1.5M in Series B Preferred Stock is already issued and non-refundable — this is a sunk cost even if the deal does not close
- The $3.825M secured note (8% PIK, 5-year term) adds significant leverage to a micro-cap company with no reported revenue or earnings in this filing
- The note has aggressive default provisions including a 5% Trigger Effect on the outstanding balance for the first two trigger events and 18% default interest
- The transaction is structured entirely through a single counterparty (Streeterville Capital) who is both the recipient of all equity and the lender — creating concentrated counterparty risk
- The property is purchased 'AS IS, WHERE IS, WITH ALL ITS FAULTS' with limited seller warranties
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001477932-26-005955 |
| Document: edbl_ex102.htm | 0001477932-26-005955 |
| Document: edbl_8k.htm | 0001477932-26-005955 |
| Document: edbl_ex991.htm | 0001477932-26-005955 |
| Document: 0001477932-26-005955-index-headers.html | 0001477932-26-005955 |
| Document: 0001477932-26-005955-index.html | 0001477932-26-005955 |
| Document: 0001477932-26-005955.txt | 0001477932-26-005955 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 5d ago | 8-K | $0.8511 | awaiting T+20 | — | $0.7380 (−13.29%) |
Oct 6, 2026 21d ago | Press Release | $1.14 | awaiting T+20 | — | $0.7380 (−35.26%) |
Oct 1, 2026 26d ago | 8-K | $1.14 | awaiting T+20 | — | $0.7380 (−35.26%) |
Sep 2, 2026 7w ago | 8-K | $1.49 $1.19 | ▼ −20.13% | ▼ −19.80% | $0.7380 (−50.47%) |
Aug 24, 2026 9w ago | 8-K | $1.41 $1.27 | ▼ −9.93% | ▼ −11.24% | $0.7380 (−47.66%) |
Aug 17, 2026 10w ago | 8-K | $1.56 $1.41 | ▼ −9.62% | ▼ −7.64% | $0.7380 (−52.69%) |
Aug 14, 2026 10w ago | 8-K | $1.67 $1.45 | ▼ −13.17% | ▼ −11.18% | $0.7380 (−55.81%) |
Aug 10, 2026 11w ago | EFFECT | $1.83 $1.42 | ▲ +22.40% | ▲ +21.49% | $0.7380 (+59.67%) |
Aug 7, 2026 11w ago | Press Release | $1.88 $1.39 | ▼ −26.06% | ▼ −25.67% | $0.7380 (−60.74%) |
Aug 3, 2026 12w ago | 8-K | $2.28 $1.46 | ▲ +35.96% | ▲ +37.20% | $0.7380 (+67.63%) |
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