EDBL Edible Garden AG Inc
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
Actionable Insight
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. The 0% historical win rate at T+20 on prior EDBL reports confirms the extreme downside risk in this name.
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
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 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
|
Jun 18, 2026
today
|
DEFA14A
| $0.2069 awaiting T+1 | awaiting T+1 | — | $0.2060 (−0.43%) |
|
Jun 15, 2026
3d ago
|
DEFA14A
| $0.2110 $0.2200 | ▲ +4.27% | ▲ +4.86% | $0.2060 (−2.37%) |
|
Jun 12, 2026
6d ago
|
8-K
| $0.2110 $0.2200 | ▼ −4.27% | ▼ −4.86% | $0.2060 (+2.37%) |
|
May 15, 2026
4w ago
|
Press Release
| $0.3890 $0.2870 | ▲ +26.22% | ▲ +26.16% | $0.2060 (+47.04%) |
|
May 7, 2026
6w ago
|
Press Release
| $0.3850 $0.3960 | ▲ +2.86% | ▲ +2.03% | $0.2060 (−46.49%) |
|
Mar 24, 2026
12w ago
|
Press Release
| $1.37 $1.12 | ▼ −18.25% | ▼ −18.81% | $0.2060 (−84.96%) |
|
Mar 10, 2026
14w ago
|
8-K
| $2.38 $2.33 | ▼ −2.10% | ▼ −0.62% | $0.2060 (−91.34%) |
|
Mar 10, 2026
14w ago
|
Press Release
| $2.27 $2.38 | ▲ +4.85% | ▲ +4.95% | $0.2060 (−90.93%) |
US Market Status
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