Edible Garden AG issues 674,923 shares in preferred stock exchange
Edible Garden AG issues 674,923 shares in preferred stock exchange
Edible Garden AG Inc (NASDAQ:EDBL) announced it entered into exchange agreements with Streeterville Capital, LLC on July 27 and July 29. Under the agreements, the company exchanged a total of 2,074 shares of its Series B Preferred Stock, which had an aggregate stated value of $2,074,000, for 674,923 shares of its common stock.The transaction comes as the stock trades near its 52-week low of $2.20, with shares currently at $2.28. The company has faced significant headwinds, with its stock down nearly 100% over the past year. According to an InvestingPro tip, the company is quickly burning through cash, reflected in its weak financial health score. InvestingPro analysis suggests the stock is undervalued at current levels, with 17 additional ProTips available to subscribers.
According to the company’s statement, the number of common shares issued was determined by dividing the preferred stock’s stated value by the Nasdaq Minimum Price of Edible Garden’s common stock as reported on the Nasdaq Capital Market on the day immediately before each agreement. The preferred stock exchanged had a par value of $0.0001 per share and a stated value of $1,000 per share.
The transaction was conducted as an unregistered sale of equity securities and relied on the exemption provided in Section 3(a)(9) of the Securities Act of 1933. The newly issued common shares were not registered under the Securities Act.
This information is based on a press release statement included in a recent SEC filing. For deeper insights into EDBL’s financial position, investors can access the comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro.
In other recent news, Edible Garden AG Inc. reported a significant revenue increase for the first quarter of 2026, with a 22.9% rise to $3.3 million compared to the same period last year. Despite this revenue growth, the company experienced a net loss of $3.7 million, which was slightly higher than the loss reported in the previous year. Additionally, Edible Garden announced an expansion of its Garden Starters pallet display program with Wakefern Food Corp., which will be featured in a midsummer promotional event at participating ShopRite locations. This expansion follows positive customer feedback from the spring season and includes USDA Organic Certified living herb plants. The company’s recent developments highlight its efforts to grow revenue and expand its market presence.