Edible Garden AG Incorporated Enters into Merchant Cash Advance Agreement

On December 4, 2024, Edible Garden AG Incorporated (NASDAQ: EDBL) finalized a significant agreement with Cedar Advance LLC. This transaction, known as the “December Cedar Agreement,” involved the sale of $2,485,000 of the company’s future accounts receivable to Cedar for a total purchase price of $1,750,000. After deducting fees and expenses amounting to $87,500, the net funds provided to Edible Garden totaled $1,662,500.

A portion of the proceeds from this agreement was utilized to fulfill the remaining future accounts receivable of $523,150 owed to Cedar under an earlier merchant cash advance agreement dated May 3, 2024.

As per the terms outlined in the December Cedar Agreement, Edible Garden AG is obligated to remit 25.0% of all funds collected from customers on a weekly basis to Cedar. Cedar, in turn, is expected to withdraw $65,395 weekly directly from Edible Garden’s bank account until the $2,485,000 owed to Cedar is repaid in full.

To secure its commitments under the December Cedar Agreement, Edible Garden granted Cedar a security interest in all pertinent accounts, including deposit accounts, accounts receivable, and other receivables, as per the definitions in Article 9 of the Uniform Commercial Code. Additionally, the company agreed not to incur any liens on the collateral provided. In the event of default as defined in the agreement, Cedar retains the right to enforce its security interest in the collateral and demand full payment of outstanding receivables plus associated fees.

It should be noted that the above overview of the December Cedar Agreement is not exhaustive and should be read in conjunction with the complete text of the agreement, attached as Exhibit 10.1.

This news falls under the Entry into a Material Definitive Agreement as outlined in Item 1.01 of Form 8-K. Additionally, the details relating to this transaction have been incorporated into Item 2.01, concerning the Completion of Acquisition or Disposition of Assets, and Item 2.03, regarding Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, of the same Form.

Investors and stakeholders are encouraged to review the filings for a comprehensive understanding of Edible Garden AG’s recent agreements and financial obligations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Edible Garden’s 8K filing here.

Edible Garden Company Profile

Edible Garden AG Incorporated, together with its subsidiaries, operate as a controlled environment agriculture farming company. It offers various packaged products, including cilantro, rosemary, mint, thyme, oregano, bay leaves, chives, poultry mix, sage, dill, buttercrunch living lettuce, basil, living butterhead lettuce, basil, parsley, arugula spring mix, baby arugula blend, baby romaine, and crisp ranch and Caesar salad kits.