Stewards, Inc. Reports Dispute Over $1.0M Deposit in Hawthorne Acquisition

What Happened

• Stewards, Inc. (via wholly owned Stewards Real Estate, LLC) disclosed a dispute over a $1.0 million earnest-money deposit tied to its planned $20.0 million purchase of The Hawthorne at 196 Shore Road, Chatham, MA. The Purchase and Sale Agreement was dated June 5, 2026.
• The agreement originally contemplated a July 1, 2026 closing, and written amendments extended the closing to August 10, 2026. On August 18, 2026 the seller, John E. Swenson Co., Inc., sent notice claiming the buyer failed to close and asserting entitlement to retain the $1.0M deposit as liquidated damages. The buyer disputed the claim the same day and instructed the escrow agent not to release the deposit.

Key Details

• Purchase price: $20.0 million in cash; earnest deposit: $1.0 million held by Gilmartin Magence LLP (escrow).
• Agreement date: June 5, 2026; final agreed closing date in amendments: August 10, 2026; seller's notice: August 18, 2026.
• Seller cites Paragraph 25 (deposit retained as liquidated damages on buyer default); escrow Paragraph 24 requires holding the deposit pending mutual written instructions or a court order.
• Company believes the Purchase Agreement has not been terminated, is disputing the seller’s claim, and may pursue contractual, legal or equitable remedies (including litigation).

Why It Matters

• The dispute could delay or prevent the $20M acquisition and may result in legal costs or an impairment/write-off of part or all of the $1.0M deposit, affecting Stewards’ liquidity, financial condition and results of operations.
• There is no assurance the company will recover the deposit or that the acquisition will close; investors should not rely on prior timing estimates for the deal. The company cannot predict the dispute’s outcome and will disclose material developments as appropriate.