Starco Brands, Inc. (STCB): debt financing — Starco Brands enters $2M secured promissory note with CEO; issues warrants for 285,714 shares at $0.01

Starco Brands, Inc.

$2,000,000 secured promissory note issued to CEO Ross Sklar on Dec 29, 2022.
Note carries floating interest rate of WSJ Prime + 4% (currently 11.5%), matures Aug 1, 2023.
Warrants to purchase 285,714 shares of common stock at $0.01 per share, exercisable until Dec 29, 2027.
Security agreement grants security interest in substantially all tangible and intangible personal property.
Financing approved by disinterested directors to provide short-term liquidity for non-ordinary course transactions.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Starco Brands, Inc. incurred loan of $2,000,000 with Ross Sklar at Wall Street Journal Prime Rate (re-assessed on the first day of each month) plus maturing August 1, 2023.

Instrument: loan
Principal: $2,000,000
Counterparty: Ross Sklar
Rate: Wall Street Journal Prime Rate (re-assessed on the first day of each month) plus
Maturity: August 1, 2023
Event: incurrence

Exact text from the filing

Promissory Note The Promissory Note was issued to Sklar on December 29, 2022, in the principal sum of $2,000,000, and provides for the funding of $2,000,000 by Sklar to the Company (the "Loaned Funds"). The Promissory Note carries a floating interest rate comprised of the Wall Street Journal Prime Rate (re-assessed on the first day of each month) plus 4% (for a current floating interest rate of 11.5%) (the "Interest Rate"). The Promissory Note matures on August 1, 2023 (the "Maturity Date"), and has a default interest rate equal to the then current Interest Rate plus 5%.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Starco Brands, Inc. entered into Promissory Note with Ross Sklar valued at $2,000,000 (effective 2022-12-29).

Action: entry
Agreement: credit facility
Counterparty: Ross Sklar
Value: $2,000,000
Effective: 2022-12-29

Exact text from the filing

The Promissory Note was issued to Sklar on December 29, 2022, in the principal sum of $2,000,000, and provides for the funding of $2,000,000 by Sklar to the Company (the "Loaned Funds").

View on SEC.gov

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Starco Brands, Inc. filing history →

Source: SEC EDGAR

accession 0001437749-23-000516

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