Edible Garden Announces Closing of Upsized $10.2 Million Underwritten Public Offering

Rhea-AI Summary

Edible Garden AG Incorporated (Nasdaq: EDBL, EDBLW) announced the closing of its upsized public offering of 1,619,000 units at a price of $6.30 each, generating approximately $10.2 million in gross proceeds. Each unit consists of one share of common stock and one warrant, exercisable at the same price, expiring in five years. The offering included an option for underwriters to purchase an additional 242,850 shares and/or warrants, which has been partially exercised. The offering was executed under registration statements declared effective by the SEC on February 2, 2023.

Positive

• Gross proceeds of approximately $10.2 million to support business operations.
• Units offered include immediately exercisable warrants, potentially increasing future capital.
• Strategic option for underwriters to purchase additional shares could bolster market presence.

Negative

• Potential shareholder dilution from warrant exercise.

BELVIDERE, NJ, Feb. 08, 2023 (GLOBE NEWSWIRE) -- Edible Garden AG Incorporated (“Edible Garden” or the “Company”) (Nasdaq: EDBL, EDBLW), a leader in controlled environment agriculture (CEA), locally grown, organic and sustainable produce and products, today announced the closing of its upsized underwritten public offering of 1,619,000 units, with each unit consisting of one share of common stock and one warrant to purchase one share of common stock. Each unit was sold at a public offering price of $6.30 per unit. The warrants in the units are immediately exercisable at a price of $6.30 per share and expire five years from the date of issuance. The shares of common stock and accompanying warrants can only be purchased together in this offering, but were issued separately and were immediately separable upon issuance. Gross proceeds, before deducting underwriting discounts and commissions and estimated offering expenses, are approximately $10.2 million.

Edible Garden has also granted the underwriters an option to purchase an additional 242,850 shares of common stock and/or additional warrants to purchase up to 242,850 shares of common stock, to cover over-allotments, of which Maxim Group LLC has exercised its option to purchase additional warrants to purchase 242,850 shares of common stock. 

Maxim Group LLC acted as lead book-running manager and Joseph Gunnar and Co. acted as joint book-running manager in connection with this offering.

The securities described above were offered pursuant to a registration statement on Form S-1, as amended (File No. 333-268800), which was declared effective by the Securities and Exchange Commission (the "SEC") on February 2, 2023, and a registration statement on Form S-1 (File No. 333-269545) which became effective on February 2, 2023. The offering was made only by means of a prospectus which is a part of the effective registration statements. A copy of the final prospectus relating to this offering was filed with the SEC and may be obtained from Maxim Group LLC, 300 Park Avenue, 16^th Floor, New York, NY 10022, at (212) 895-3745.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Edible Garden AG Incorporated

Edible Garden AG Incorporated, is a leader in locally grown organic leafy greens and herbs backed by Zero-Waste Inspired® next generation farming. Offered at over 4,000 stores in the US, Edible Garden is disrupting the CEA and sustainability technology movement with its safety-in-farming protocols, use of sustainable packaging, patented GreenThumb software and self-watering in-store displays. The Company currently operates its own state-of-the-art greenhouses and processing facilities in Belvidere, New Jersey and Grand Rapids, Michigan, and has a network of contract growers, all strategically located near major markets in the U.S. Its proprietary GreenThumb software optimizes growing in vertical and traditional greenhouses while seeking to reduce pollution-generating food miles. Edible Garden is also a developer of ingredients and proteins, providing an accessible line of plant and whey protein powders under the Vitamin Way® and Vitamin Whey® brands. In addition, the Company plans to offer a line of sustainable food flavoring products such as Pulp gourmet sauces and chili-based products. For more information on Edible Garden go to https://ediblegardenag.com/

Investor Relations Contact:
Crescendo Communications, LLC
212-671-1020
EDBL@crescendo-ir.com 

FAQ

What was Edible Garden's recent public offering details?

Edible Garden closed an offering of 1,619,000 units at $6.30 each, totaling about $10.2 million in gross proceeds.

What is the structure of Edible Garden's public offering?

Each unit consists of one share of common stock and one warrant, both priced at $6.30, expiring in five years.

What are the implications of the options granted to underwriters in Edible Garden's offering?

Underwriters were granted an option to purchase an additional 242,850 shares and/or warrants to cover over-allotments, enhancing market liquidity.

When were the registration statements for Edible Garden's offering declared effective?

The SEC declared the registration statements effective on February 2, 2023.

How might Edible Garden's offering impact existing shareholders?

The offering could result in shareholder dilution if the warrants are exercised.