Edible Garden (NASDAQ:EDBL) has announced the pricing of its upsized underwritten public offering. The offering comprises 1,619,000 units, including one share of common stock and one warrant to purchase one additional share. The public offering price per unit is set at $6.30. The warrants are immediately exercisable at the same price and expire in five years.
It’s essential to note that the shares of common stock and accompanying warrants can solely be purchased jointly in this offering. As a result, the company expects to generate approximately $10.2 million in gross proceeds before deducting underwriting discounts, commissions, and estimated offering expenses. The underwriters can also purchase 242,850 shares of common stock and warrants.
Maxim Group LLC is the lead book-running manager for this offering, with Joseph Gunnar and Co. serving as the joint book-running manager. The offering is anticipated to close on or about February 7, 2023, if the legal requirements are met.
Edible Garden is committed to producing locally grown, organic, and sustainable produce and products through its expertise in controlled environment agriculture. This offering presents an opportunity for investors to support the company’s mission and benefit from its growth and success.
Edible Garden Ag decided to implement the reverse stock split at the company’s special meeting of stockholders held on January 24, 2023. At this meeting, stockholders ratified an amendment to the company’s certificate of incorporation to execute a reverse stock split in a range of 1-for-25 to 1-for-75 and gave the board of directors the authority to implement and select the exact split ratio within this range. The board subsequently set the ratio at 1-for-30.
The CEO of Edible Garden, Jim Kras, stated that the reverse stock split is implemented to meet Nasdaq’s minimum bid price requirements and to improve the marketability of the company’s shares. This move is in line with other companies listed on the Nasdaq stock exchange, which are looking to enhance the marketability of their shares and ‘enhance its attractiveness’ to potential investors.
Photo by Meriç Dağlı on Unsplash
You must log in to post a comment.