Edible Garden AG Inc. Announces Exchange of Series B Preferred Stock for Common Stock Shares

Edible Garden AG Inc. (NASDAQ: EDBL), a controlled environment agriculture company, has announced a significant transaction involving the exchange of its Series B Preferred Stock for shares of its common stock. This move was disclosed in a Form 8-K filed with the Securities and Exchange Commission, dated April 24, 2026.

Key Highlights of the Transaction

• Exchange Agreement Details: On April 21, 2026, Edible Garden AG Inc. (the “Company”) entered into exchange agreements with Streeterville Capital, LLC, a Utah limited liability company (“Streeterville”).
• Share Exchange: The Company agreed to exchange 3,301 shares of its Series B Preferred Stock (par value \$0.0001 per share) for a total of 3,587,478 shares of Edible Garden’s common stock (par value \$0.0001 per share, referred to as “Exchange Shares”).
• Valuation: The exchanged Preferred Stock had an aggregate stated value of \$3,301,000, or \$1,000 per share.
• Pricing Basis: The number of Exchange Shares issued was calculated by dividing the stated value (\$3,301,000) by the Nasdaq Minimum Price of the Company’s common stock as reported on the Nasdaq Capital Market on the day immediately preceding the exchange agreement.
• Securities Act Exemption: The issuance of the Exchange Shares was not registered under the Securities Act of 1933 but was conducted under the exemption provided by Section 3(a)(9) of the Act.

Potentially Price-Sensitive Information for Shareholders

• Dilution Impact: The issuance of 3,587,478 new shares of common stock is likely to result in a material increase in the number of outstanding shares, which may lead to dilution of existing shareholders’ equity positions.
• Change in Share Structure: The conversion of preferred shares to common shares could impact the voting structure and ownership percentages, depending on the relative size of the new issuance compared to the current float.
• Market Reaction: The transaction could be interpreted as a move to strengthen the Company’s equity base, reduce preferred obligations, or respond to financial pressures. Investors should consider how the market may react to the potential dilution and the rationale behind the transaction.
• Emerging Growth Company Status: The filing confirms Edible Garden remains an “emerging growth company” under SEC definitions, which may affect regulatory reporting and compliance.

Other Notable Details

• Company Details: Edible Garden AG Inc. is headquartered at 283 County Road 519, Belvidere, NJ 07823. The President and CEO is James E. Kras.
• Trading Information: The Company’s common stock trades under the symbol EDBL and its warrants under EDBLW, both listed on the Nasdaq Stock Market LLC.
• Filing Date: The report was officially signed and filed on April 24, 2026.

What Should Investors Watch?

• The large issuance of new common shares could be materially dilutive to existing shareholders and may affect the Company’s share price in the near term.
• Streeterville Capital, LLC’s role as a major counterparty in this transaction may signal a shift in the Company’s capital structure or financial strategy.
• Investors should monitor trading volumes and any subsequent SEC filings for further capital market activities or updates regarding the Company’s strategic direction.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with their financial advisors before making investment decisions. The information herein is based solely on the public SEC filing and may not reflect subsequent developments.

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