Edible Garden AG Inc (EDBL): debt financing — Edible Garden sells $1.49M future receivables for $1.0M net; weekly payments of $53,250

Edible Garden AG Inc

Sold $1,491,000 of future accounts receivable for $1,050,000 purchase price; net $1,000,000 after $50,000 fees.
Cedar Advance to withdraw $53,250 per week via ACH until the full $1,491,000 is paid.
Granted Cedar a security interest in all accounts, accounts receivable, and deposit accounts.
Effective financing cost implies ~49% premium over net funds provided; indefinite term until paid in full.
Transaction structured as sale of receivables, not a loan; proceeds for general working capital.

item 1.01 item 2.01 item 2.03 item 9.01

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

Edible Garden AG Inc incurred debt of $1,491,000 with Cedar Advance LLC.

Principal: $1,491,000
Counterparty: Cedar Advance LLC
Event: incurrence

Exact text from the filing

On March 14, 2024, Edible Garden AG Incorporated (the “Company”) entered into a standard merchant cash advance agreement (the “Agreement”) with Cedar Advance LLC (“Cedar”), dated as of March 12, 2024, pursuant to which the Company sold to Cedar $1,491,000 of its future accounts receivable for a purchase price of $1,050,000, less fees and expenses of $50,000, for net funds provided of $1,000,000.

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

Edible Garden AG Inc entered into Agreement with Cedar Advance LLC valued at $1,491,000 (effective 2024-03-14).

Action: entry
Agreement: credit facility
Counterparty: Cedar Advance LLC
Value: $1,491,000
Effective: 2024-03-14

Exact text from the filing

On March 14, 2024, Edible Garden AG Incorporated (the "Company") entered into a standard merchant cash advance agreement (the "Agreement") with Cedar Advance LLC ("Cedar"), dated as of March 12, 2024, pursuant to which the Company sold to Cedar $1,491,000 of its future accounts receivable for a purchase price of $1,050,000, less fees and expenses of $50,000, for net funds provided of $1,000,000.

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299 debt financings filed in the last 30 days. Browse all debt financings →

Edible Garden AG Inc filing history →

Source: SEC EDGAR

accession 0001477932-24-001371

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