Starco Brands, Inc. (STCB): debt financing — Starco Brands enters $800K secured note with CEO; issues 114,286 warrants at $0.01

Starco Brands, Inc.

Borrowed $800,000 from CEO Ross Sklar via secured promissory note due July 1, 2023.
Interest rate = Prime Rate + 4% (currently 11.75%); default rate +5%.
Warrants for 114,286 shares of Class A common stock at $0.01 per share, expiring March 2, 2028.
Proceeds used for short-term liquidity for non-ordinary course business and subsidiary.
Security agreement covers substantially all assets (excluding IP) to secure the note.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.95

Starco Brands, Inc. incurred loan of $800,000 with Ross Sklar, its Chief Executive Officer (“Sklar”) at Wall Street Journal Prime Rate (re-assessed on the first day of each month) plus maturing July 1, 2023.

Instrument: loan
Principal: $800,000
Counterparty: Ross Sklar, its Chief Executive Officer (“Sklar”)
Rate: Wall Street Journal Prime Rate (re-assessed on the first day of each month) plus
Maturity: July 1, 2023
Event: incurrence

Exact text from the filing

course business transactions and liquidity of a wholly-owned subsidiary. Promissory Note The Promissory Note was issued to Sklar on March 3, 2023, in the principal sum of $800,000, and provides for the funding of $800,000 by Sklar to the Company (the “Loaned Funds”). The Promissory Note carries a floating interest rate comprised of the Wall Street

View on SEC.gov

Browse all debt financings →

Starco Brands, Inc. filing history →

Source: SEC EDGAR

accession 0001493152-23-007149

view filing index on sec.gov

view primary document

Machine-readable: JSON · Markdown · Plain text

This headline and bullets were generated automatically by deepseek-v4-flash:cloud@v2 from the public filing. Read the source on SEC.gov before relying on any specific claim. Not investment advice. See methodology for how this pipeline works.