Starco Brands enters $12.5M revolving credit facility, repays CEO's convertible note

Starco Brands, Inc.

Loan and Security Agreement with Gibraltar Business Capital provides up to $12.5M revolving line plus $1.5M overadvance.
Maturity date May 24, 2026, with automatic one-year extension subject to conditions; interest at 1M Term SOFR + 4.50%-5.00%.
Loan proceeds used to fully repay CEO Ross Sklar's Convertible Note (Feb 2022) and partially pay down the 2023 Note.
Sklar's 2023 Note maturity extended to August 31, 2026, and subordinated to the new lender; disinterested board approved.
Borrowing base set at 90% eligible accounts, 90% credit card receivables, up to $7M from inventory (65% cost, 85% liquidation).

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