Edible Garden Enters Warrant Exercise Agreement, Exercises 2.02M Shares

Edible Garden AG Incorporated has entered into a warrant exercise agreement with an accredited investor to exercise 2,021,571 shares of common stock for cash. In return, the investor received new warrants to purchase 4,043,142 shares of common stock. The exercise price of the existing warrants was reduced to $2.06 per share, matching the closing price of Edible Garden's common stock on the Nasdaq Capital Market, according to a StockTitan report.

Edible Garden AG Incorporated (Nasdaq: EDBL) has entered into a significant warrant exercise agreement with an accredited investor, resulting in immediate cash proceeds of $4.2 million. The transaction involved the exercise of 2,021,571 existing warrants, with the exercise price reduced to $2.06 per share, aligning with the most recent closing price of Edible Garden's common stock on the Nasdaq Capital Market.

In exchange for the immediate exercise of the existing warrants, the investor received new unregistered warrants to purchase an aggregate of 4,043,142 shares of common stock. These new warrants, with an exercise price of $2.06 per share, have a five-year expiration term. The transaction was facilitated by Maxim Group LLC, acting as both warrant inducement agent and financial advisor.

The immediate cash proceeds of $4.2 million will enhance Edible Garden's near-term liquidity. However, the new warrants, if exercised, could potentially dilute the company's shareholder base in the future. The company has agreed to file a registration statement with the SEC covering the resale of shares issuable upon the exercise of the new warrants. The exact amount of fees and expenses to be paid to the financial advisor is not specified in the announcement.

Investors should monitor the company's filing of the registration statement and the use of the proceeds over the next 90-180 days. Additionally, it will be important to track whether the new warrants are exercised within the five-year term.