Edible Garden Stock Surges After Private Placement Sparking Retail Chatter

Net proceeds of the exercise, including exercise of certain existing warrants, are expected to be about $2.8 million.

Shares of Edible Garden AG ($EDBL) were up 2.35% in after-hours trading session on Monday after the company said it entered into an agreement with a single institutional investor to raise $2.8 million through a private placement.

Edible stock had shot up 141% on Monday, its highest spike in over a month.

Under the terms of the transaction, an existing holder of its warrants agreed to exercise 8,330,000 outstanding class B warrants at a price of $0.36 per share. The company said these warrants were previously issued in a public offering that closed in September 2024. 

The stockholder will receive new Class A Warrants to purchase up to an aggregate of 8,330,000 shares of common stock and new class B Warrants to purchase up to an aggregate of 8,330,000 shares of common stock. 

The new class A Warrants will expire five years from the issuance date and the new class B Warrants will expire eighteen months from the issuance date.

Message volumes on Stocktwits surged 2,567% in just over a day with investor sentiment leaning largely bullish.

Maxim Group acted as warrant inducement agent and financial advisor for the deal.

Edible Garden is a provider of locally grown, organic, and sustainable produce. Its stock is down 96% year-to-date. 

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