Edible Garden Announces Pricing of $6.0 Million Public Offering
Edible Garden announced a public offering priced at $6.0 million. The offering includes 2,655,000 shares of common stock (or pre-funded warrants) and Class A and B warrants to purchase up to 2,655,000 shares each. The combined public offering price is $2.26 per share ($2.25 per pre-funded warrant), with the Class A warrants expiring in five years and Class B warrants in eighteen months. The offering is expected to close on May 23, 2024, contingent on standard closing conditions. Gross proceeds are projected to be approximately $6.0 million before fees and expenses. Maxim Group is the sole placement agent for this offering. The offering is made under an effective registration statement filed with the SEC.
- Public offering priced at $6.0 million, indicating strong investor interest.
- Warrants provide additional potential for future equity raises.
- Gross proceeds of approximately $6.0 million before fees and expenses, enhancing liquidity.
- Maxim Group acting as sole placement agent, indicating reputable collaboration.
- Effective registration statement filed with the SEC, ensuring regulatory compliance.
- Potential shareholder dilution with the issuance of 2,655,000 new shares.
- Class B warrants expiring in eighteen months may pressure stock prices if exercised quickly.
- Offering expenses and placement agent fees will reduce net proceeds for the company.
- Short-term nature of Class B warrants may cause volatility in stock price.
Insights
Edible Garden's recent public offering aims to raise
From a financial perspective, this capital injection can bolster the company’s operational capabilities and support its initiatives in controlled environment agriculture (CEA), which has been gaining traction as a sustainable farming method. However, investors should carefully consider the potential dilution of existing shares and the company's ability to efficiently utilize the raised funds to drive growth and profitability.
While the offering demonstrates confidence from the placement agent, Maxim Group LLC, the success of this move also heavily depends on Edible Garden's execution of its growth strategy in the competitive organic produce market.
The planned offering of
However, the market for organic produce is competitive and the company's success in this field depends on its ability to leverage the additional capital effectively. Investors should watch for how the funds are allocated, particularly in expanding production capabilities, scaling distribution channels and marketing efforts to capture a larger market share.
Moreover, the effectiveness of their growth strategy will be important in determining the long-term impact of this offering on shareholder value. While the market conditions seem favorable, the company must demonstrate tangible progress and returns on this investment to justify the dilution and bolster investor confidence.
BELVIDERE, NJ, May 22, 2024 (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 pricing of a public offering of an aggregate of 2,655,000 shares of its common stock (or pre-funded warrants in lieu thereof), Class A warrants to purchase up to 2,655,000 shares of common stock, and Class B warrants to purchase up to 2,655,000 shares of common stock, at a combined public offering price of
Maxim Group LLC is acting as sole placement agent in connection with this offering.
The securities described above are being offered pursuant to a registration statement on Form S-1, as amended (File No. 333-278967), which was declared effective by the Securities and Exchange Commission (the "SEC") on May 22, 2024. The offering is being made only by means of a prospectus which is a part of the effective registration statement. A preliminary prospectus relating to the offering has been filed with the SEC. Copies of the final prospectus relating to this offering, when available, will be filed with the SEC and may be obtained from Maxim Group LLC, 300 Park Avenue, 16th 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®
Edible Garden AG Incorporated is a leader in controlled environment agriculture (CEA), locally grown, organic and sustainable produce and products backed by Zero-Waste Inspired® next generation farming. Offered at over 5,000 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 2.0 patented (US Nos.: US 11,158,006 B1, US 11,410,249 B2 and US 11,830, 088 B2) software optimizes growing in vertical and traditional greenhouses while seeking to reduce pollution-generating food miles. Its proprietary patented (U.S. Patent No. D1,010,365) Self-watering display is designed to increase plant shelf life and provide an enhanced in-store plant display experience. 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 offers 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/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict including the timing of closing the offering. The words “expect,” “may,” “seeking,” “will,” and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including market and other conditions, the Company’s ability to achieve its growth objectives, and other factors set forth in the Company’s filings with the Securities and Exchange Act Commission, including the Company’s annual report on Form 10-K for the year ended December 31, 2023 and subsequent quarterly reports. Actual results might differ materially from those explicit or implicit in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. The Company undertakes no obligation to update any such forward-looking statements after the date hereof to conform to actual results or changes in expectations, except as required by law.
Investor Relations Contact:
Crescendo Communications, LLC
212-671-1020
EDBL@crescendo-ir.com
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