Edible Garden AG Inc Announces Acquisition of Iowa Facility ($6.325M)

What Happened Edible Garden AG Incorporated announced on its Form 8-K (filed Oct 1, 2026) that on September 30, 2026 it entered into a Real Estate Purchase Contract to buy real and personal property in Webster City, Hamilton County, Iowa, for an aggregate purchase price of $6,325,000. The Property is currently leased to the company’s affiliate, Edible Garden Sustainable Ventures LLC, and is being developed as the Prairie Hills ready‑to‑drink manufacturing facility. As part of the deal the company issued 1,500 shares of Series B Preferred Stock on September 30, 2026 and will issue additional securities and a secured promissory note at closing; a press release was issued October 1, 2026.

Key Details

• Purchase Price: $6,325,000 for the Webster City property and associated assets.
• Initial consideration issued: 1,500 shares of Series B Preferred Stock (issued Sept 30, 2026), assigned value $1,500,000; these Initial Preferred Shares are non‑refundable and were issued in a private Section 4(a)(2) transaction.
• Closing consideration: at closing the company will issue 1,000 additional Series B Preferred Shares (assigned value $1,000,000) and a secured promissory note for $3,825,000.
• Note terms: 5‑year maturity, 8% per annum interest compounded daily, secured by a new real estate mortgage on the Property; Streeterville Capital will partially release two existing mortgages at closing.
• Timing: Company has a 20‑day review/due diligence period beginning Sept 30, 2026 and the Closing is expected about five days after that review period (or earlier if agreed).

Why It Matters This transaction adds a physical manufacturing asset intended for the company’s Prairie Hills ready‑to‑drink operations and changes Edible Garden’s capital structure by (a) issuing preferred equity (non‑refundable, unregistered) and (b) creating a material secured debt obligation ($3.825M note with 8% interest). Investors should note the increase in long‑term secured debt and the issuance of preferred shares as important balance sheet and financing developments tied directly to the company’s manufacturing expansion. The deal remains subject to the company’s 20‑day review and customary closing conditions.