secwatch.observer — SEC 8-K summary
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Issuer:     Starco Brands, Inc. (STCB)
CIK:        0001539850
Form:       8-K
Filed at:   2024-05-31T23:59:59+00:00
Accession:  0001493152-24-022241
Event type: debt
Sentiment:  neutral
Materiality: 0.75
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

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

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/1539850/000149315224022241/0001493152-24-022241-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/1539850/000149315224022241/form8-k.htm
  HTML page:      https://secwatch.observer/filing/0001493152-24-022241

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