Edible Garden has completed its purchase of property in Webster City, Iowa, for its Prairie Hills ready-to-drink manufacturing facility. The $6.325 million purchase price was funded with Series B preferred shares and a five-year secured note, rather than being described as a cash payment.
- The property includes land, buildings, improvements, fixtures, equipment, contracts, permits and related rights. It was transferred to Edible Garden Prairie Hills LLC, a wholly owned subsidiary.
- The purchase price consisted of $3.825 million in principal under a promissory note and 2,500 Series B preferred shares assigned a total value of $2.5 million.
- Of those shares, 1,500—valued at $1.5 million—were issued on September 30. At closing on October 30, Edible Garden issued a further 1,000 shares, valued at $1 million.
- Both the note and the closing shares were issued to Streeterville Capital at the seller’s direction.
- The note matures five years after issuance and carries 8% annual interest, compounded daily. Edible Garden’s obligations are secured by a mortgage on the acquired property.
The acquisition adds the Prairie Hills facility property to a wholly owned subsidiary. The financing also creates a secured debt obligation and adds preferred shares to the company’s capital structure; the terms provided do not describe the preferred shares’ other economic or voting rights.