---
schema_version: "secwatch.filing_event.v1"
accession: "0001437749-23-000516"
form_type: "8-K"
ticker: "STCB"
cik: "0001539850"
company_name: "Starco Brands, Inc."
filed_at: "2023-01-05T23:59:59+00:00"
generated_at: "2026-06-20T19:35:51.740187+00:00"
event_type: "debt"
sentiment: "neutral"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# Starco Brands enters $2M secured promissory note with CEO; issues warrants for 285,714 shares at $0.01

## Summary
- $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.

## SEC filing metadata
- accession: 0001437749-23-000516
- form_type: 8-K
- ticker: STCB
- cik: 0001539850
- company_name: Starco Brands, Inc.
- filed_at: 2023-01-05T23:59:59+00:00
- event_type: debt
- sentiment: neutral
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 2.03, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1539850/000143774923000516/0001437749-23-000516-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1539850/000143774923000516/stcb20221230_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001437749-23-000516
- JSON: https://secwatch.observer/filing/0001437749-23-000516.json
- Plain text: https://secwatch.observer/filing/0001437749-23-000516.txt

## Key facts
- Debt Financings
  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
  source text: 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%.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1539850/000143774923000516/0001437749-23-000516-index.htm
- Material Agreements
  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
  source text: 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").
  evidence_url: https://www.sec.gov/Archives/edgar/data/1539850/000143774923000516/0001437749-23-000516-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.