The company has effectively pledged its entire manufacturing asset to Streeterville Capital while issuing preferred stock worth 2.5x its market cap. Monitor for potential cash flow strain from the 8% PIK note and any conversion rights on the preferred shares that could further dilute common equity.
Price Chart
Executive Summary
Edible Garden AG completed the acquisition of a 6.2-acre property in Webster City, Iowa for its Prairie Hills ready-to-drink manufacturing facility. The $6.325 million purchase price was paid entirely to Streeterville Capital via 2,500 Series B Preferred Shares (valued at $2.5 million total) and a $3.825 million secured promissory note with 8% PIK interest. The transaction converts the company from tenant to owner of its planned manufacturing hub, but the all-equity-and-debt-to-a-single-lender structure creates significant dilution and leverage for a micro-cap company with a $1 million market cap.
Key Facts
- Acquired 6.2-acre property in Webster City, Iowa for Prairie Hills RTD facility
- Total purchase price of $6,325,000 paid to Streeterville Capital
- Issued 1,000 Series B Preferred Shares at closing (valued at $1,000,000)
- Previously issued 1,500 Series B Preferred Shares on September 30, 2026 (valued at $1,500,000)
- Issued $3,825,000 secured promissory note with 8% PIK interest, 5-year maturity
- Note secured by real estate mortgage on the property
- Company market cap is approximately $1 million
- Total consideration of $6.325 million is over 6x the company's market cap
Financial Impact
Total purchase price of $6,325,000, consisting of $2,500,000 in Series B Preferred Stock and a $3,825,000 secured promissory note. This exceeds the company's $1 million market cap by over 6x.
Risk Factors
- Extreme dilution risk: $2.5 million in preferred stock issued vs $1 million market cap
- High leverage: $3.825 million secured note represents 383% of market cap
- Single counterparty concentration: all financing comes from Streeterville Capital
- PIK interest accrues, increasing debt burden over time
- No reported revenue or earnings in filing to assess ability to service debt
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001477932-26-006550 |
| Document: 0001477932-26-006550-index-headers.html | 0001477932-26-006550 |
| Document: 0001477932-26-006550-index.html | 0001477932-26-006550 |
| Document: 0001477932-26-006550.txt | 0001477932-26-006550 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 2d ago | 8-K | $0.7001 | awaiting T+20 | awaiting T+20 | $0.7360 (−5.13%) |
Oct 22, 2026 10d ago | 8-K | $0.8511 | awaiting T+20 | awaiting T+20 | $0.7360 (−13.52%) |
Oct 6, 2026 26d ago | Press Release | $1.14 | awaiting T+20 | awaiting T+20 | $0.7360 (−35.44%) |
Oct 1, 2026 4w ago | 8-K | $1.14 $0.7355 | ▼ −35.48% | ▼ −33.67% | $0.7360 (−35.44%) |
Sep 2, 2026 8w ago | 8-K | $1.49 $1.19 | ▼ −20.13% | ▼ −19.80% | $0.7360 (−50.60%) |
Aug 24, 2026 9w ago | 8-K | $1.41 $1.27 | ▼ −9.93% | ▼ −11.24% | $0.7360 (−47.80%) |
Aug 17, 2026 10w ago | 8-K | $1.56 $1.41 | ▼ −9.62% | ▼ −7.64% | $0.7360 (−52.82%) |
Aug 14, 2026 11w ago | 8-K | $1.67 $1.45 | ▼ −13.17% | ▼ −11.18% | $0.7360 (−55.93%) |
Aug 10, 2026 11w ago | EFFECT | $1.83 $1.42 | ▲ +22.40% | ▲ +21.49% | $0.7360 (+59.78%) |
Aug 7, 2026 12w ago | Press Release | $1.88 $1.39 | ▼ −26.06% | ▼ −25.67% | $0.7360 (−60.85%) |
US Market Status
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