Edible Garden AG Inc Exchanges Preferred Stock for Common Shares

What Happened
Edible Garden AG Inc filed an 8-K reporting that on July 27, 2026 and July 29, 2026 it entered into exchange agreements with Streeterville Capital, LLC to convert 1,919 and 155 shares, respectively, of the Company’s Series B Preferred Stock into a total of 674,923 shares of common stock. The preferred shares had an aggregate stated value of $2,074,000 ($1,000 per preferred share). The number of common shares issued was calculated by dividing that stated value by the Nasdaq Minimum Price of Edible Garden’s common stock as reported on the Nasdaq Capital Market on the day immediately preceding each exchange.

Key Details

• Counterparty: Streeterville Capital, LLC (Utah limited liability company).
• Preferred converted: 1,919 and 155 shares of Series B Preferred (total 2,074 preferred shares).
• Common issued: 674,923 common shares in total.
• Consideration & method: $2,074,000 stated value; exchange ratio = Stated Value ÷ Nasdaq Minimum Price (day before each agreement). Issuance was unregistered and made under Securities Act Section 3(a)(9).

Why It Matters
This transaction changes the company’s capital structure by converting Series B preferred into common stock, increasing the number of common shares outstanding. That increase can dilute existing common shareholders’ ownership percentage and may affect per‑share metrics (e.g., earnings per share). The issuance was not registered under the Securities Act and was completed under a statutory exemption (Section 3(a)(9)), which is a routine method for direct exchanges but important to note for governance and disclosure.