Edible Garden AG Converts $390K Preferred Stock to Common, Resulting in Significant Dilution

summarizeSummary

Edible Garden AG Inc. exchanged $390,000 in Series B Preferred Stock for 59,114 shares of common stock with Streeterville Capital, LLC, a transaction that significantly dilutes existing common shareholders.

check_boxKey Events

• Preferred Stock Conversion

  Edible Garden AG exchanged $390,000 of Series B Preferred Stock for 59,114 shares of common stock with Streeterville Capital, LLC.

• Significant Dilution

  The conversion represents a substantial portion of the company's market value, resulting in significant dilution for common shareholders.

• Post-Reverse Split Share Count

  The common share count reflects the 1-for-10 reverse stock split that became effective on February 3, 2026, as previously announced on January 30, 2026.

auto_awesomeAnalysis

This 8-K filing details a series of exchange agreements where Edible Garden AG converted $390,000 of Series B Preferred Stock into 59,114 common shares. This transaction represents a substantial portion of the company's market capitalization, leading to significant dilution for existing common shareholders. The conversion price was determined by the Nasdaq Minimum Price, which often indicates a conversion at a low valuation. This capital event follows the company's recent 1-for-10 reverse stock split, which became effective on February 3, 2026, and the share counts in this filing reflect that split.