Edible Garden Secures $3 Million Through Warrant Exercise

Edible Garden Achieves Major Fundraising Milestone

Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a prominent player in controlled environment agriculture (CEA), has taken a significant step forward by entering into a deal with an institutional investor, solidifying its financial foundation. This agreement allows the investor to exercise 8,330,000 outstanding Class B Warrants, resulting in approximately $3.0 million in gross proceeds.

Details of the Warrant Exercise Agreement

The investor has pledged to exercise the existing warrants at a cash price of $0.36 per share, bringing a net benefit of about $2.8 million to the Company after covering estimated expenses. This transaction not only strengthens the Company’s balance sheet but also reaffirms investor confidence in Edible Garden’s innovative agricultural practices.

Maxim Group's Role in the Transaction

Maxim Group LLC played a crucial role by acting as the warrant inducement agent and financial advisor for this exercise transaction. Their expertise in facilitating such agreements is instrumental in ensuring that Edible Garden optimally proceeds with its financial strategies.

New Warrants and Future Prospects

In exchange for the immediate cash exercise of the Existing Warrants, the investor will also receive numerous new Class A and B Warrants, each allowing the purchase of additional shares of common stock. This move shows a robust pipeline of potential future capital, as these new warrants are set to strengthen Edible Garden’s market position.

Structure and Lifecycle of the New Warrants

The new Class A Warrants come with a five-year expiration from the issuance date, while the Class B Warrants are valid for eighteen months. This structured approach allows Edible Garden to maintain strategic financial flexibility while incentivizing additional investment in the near future.

Investor Participation and Requirements

It's essential to note that the new warrants were issued in a private placement and are subject to SEC registration. Such transactions highlight the growing demand for accredited investment opportunities in innovative agricultural solutions. The Company is committed to filing a registration statement with the SEC for the resale of shares upon exercising these new warrants, indicating transparency and compliance.

Sustainable Farming and Market Reach

Edible Garden AG is not just about numbers; it’s about redefining the agricultural landscape. With a commitment to organic and sustainable produce, their products are available in over 5,000 stores across the U.S. The Company employs Zero-Waste Inspired farming techniques, ensuring high-quality produce with minimal environmental impact. Their patented GreenThumb software and self-watering displays illustrate their dedication to disrupting traditional farming methods and promoting sustainability.

Edible Garden operates state-of-the-art facilities in New Jersey and Michigan. This strategic positioning facilitates access to major markets, ensuring that their eco-friendly products reach consumers efficiently. The commitment to reducing food miles while maximizing freshness resonates strongly with today's environmentally-conscious consumers.

Diverse Product Lines and Innovations

Beyond greens, Edible Garden offers a range of ingredients and proteins. Under the Vitamin Way® and Vitamin Whey® brands, they provide accessible protein powders, catering to health-conscious individuals. Moreover, their gourmet sauces and unique chili-based products create a diverse product portfolio that meets various culinary needs.

Conclusion: Edible Garden’s Vision for the Future

The recent warrant exercise and future fundraising capabilities set Edible Garden on a path of continued innovation and growth in CEA. As they navigate this evolving landscape, the combination of advanced technology, a commitment to sustainability, and solid financial backing positions them for long-term success.

Frequently Asked Questions

What is the recent agreement Edible Garden entered into?

Edible Garden has reached an agreement with an institutional investor to exercise warrants, generating approximately $3.0 million in gross proceeds.

Who acted as the financial advisor for this transaction?

Maxim Group LLC served as the warrant inducement agent and financial advisor, facilitating the transaction.

What kind of new warrants will the investor receive?

In exchange for exercising the existing warrants, the investor will receive new Class A and B Warrants to purchase additional shares of common stock.

Where are Edible Garden's production facilities located?

The Company operates cutting-edge greenhouses and processing facilities in New Jersey and Michigan, strategically positioned near key markets.

What distinguishes Edible Garden's products in the market?

Edible Garden's commitment to organic farming, sustainability, and their innovative product offerings set them apart in the competitive agricultural sector.

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