Fourth Amendment to Securities Purchase Agreement, by and between the Company and Evergreen Capital Management LLC, dated as of February 18, 2022
EXHIBIT 10.30
Edible Garden AG Incorporated
283 County Road 519
Belvidere, New Jersey 07823
February 18, 2022
Evergreen Capital Management LLC
156 W Saddle River Road
Saddle River, New Jersey 07458
Gentlemen:
Reference is made to the Securities Purchase Agreement dated as of October 7, 2021, and amended as of October 14, 2021, January 14 and February 11, 2022 (the “Agreement”) between Edible Garden AG Incorporated, a Delaware corporation (the “Company”), and Evergreen Capital Management LLC, a Delaware limited liability company (“Evergreen”). Terms used but not defined herein have the respective meanings set forth in the Agreement.
The Company and Evergreen have agreed to increase the aggregate Subscription Amount of Notes and Warrants to $2,900,000 by adding a seventh Tranche and the possibility for additional tranches through March 31, 2022. The parties have agreed this letter will confirm their understanding and agreement to further amend the Agreement as follows:
A. Section 2.1 of the Agreement shall be amended and restated in its entirety to read:
2.1 Closing. The Purchasers will, subject to the terms and conditions hereof, purchase an aggregate of up to $2,900,000 in aggregate Subscription Amount of Notes and Warrants (to purchase an aggregate of $3,335,000 principal amount of Notes and Warrants to purchase an aggregate of 1,278,141 shares of Common Stock), in tranches (each a “Tranche”), with the first Tranche of $1,000,000 in Subscription Amount of Notes (to purchase an aggregate of $1,150,000 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such Closing, being closed on upon execution of this Agreement. The Closing for the second Tranche of $350,000 in Subscription Amount of Notes (to purchase an aggregate of $402,500 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such Closing will occur, at the option of the Company, within thirty (30) days of the occurrence of the receipt of comments from the Commission on the Company’s registration statement on Form S-1. The Closing for the third Tranche of $350,000 in Subscription Amount of Notes (to purchase an aggregate of $402,500 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such Closing will occur, at the option of the Company, within thirty (30) days of November 11, 2021. The Closing for the fourth Tranche of $300,000 in Subscription Amount of Notes (to purchase an aggregate of $345,000 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such Closing will occur, at the option of the Company, within thirty (30) days of December 11, 2021. The Closing for the fifth Tranche of $400,000 in Subscription Amount of Notes (to purchase an aggregate of $460,000 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such closing will occur, at the option of the Company, within thirty (30) days of January 5, 2022. The Closing for the sixth Tranche of $100,000 in Subscription Amount of Notes (to purchase an aggregate of $115,000 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such closing will occur, at the option of the Company, within thirty (30) days of February 10, 2022. The Closing for the seventh Tranche of $100,000 in Subscription Amount of Notes (to purchase an aggregate of $115,000 in principal amount of Notes) and Warrants to purchase an aggregate of number of shares of Common Stock equal to the Warrant Amount for such closing will occur, at the option of the Company, within thirty (30) days of February 16, 2022. If the Company and the Purchasers agree to the funding of additional Tranches, additional Closings for Tranches of up to an aggregate of $300,000 in Subscription Amount of Notes (to purchase up to an aggregate of $345,000 in principal amount of Notes) and Warrants to purchase up to an aggregate of 83,133 shares of Common Stock, will occur in the amounts and on such dates as mutually agreed by the Company and the Purchasers, provided that these additional Closings occur on or prior to March 31, 2022. The Purchasers shall not be required to fund the Tranches if the Company is in default under the terms of this Agreement or the Notes or if the conditions to such Closing in Section 2.3(b) are not satisfied. At each Closing, each Purchaser shall purchase its Subscription Amount of the Notes for such Closing (as set forth on the signature page hereto executed by such Purchaser) and shall deliver to the Company, via wire transfer or a certified check, immediately available funds equal to such Purchaser’s Subscription Amount for such Closing, and the Company shall deliver to each Purchaser its respective Notes and Warrants for such Closing, and the Company and each Purchaser shall deliver the other items set forth in Section 2.3 deliverable at such Closing. Upon satisfaction of the covenants and conditions set forth in Sections 2.3 and 2.4 for the applicable Closing, the Closing shall occur at the offices of the Purchaser’s counsel or such other location as the parties shall mutually agree.
Except as expressly amended hereby, all of the terms and provisions of the Agreement shall remain in full force and effect.
[Remainder of Page Left Intentionally Blank]
Evergreen Capital Management LLC
February 18, 2022
Page 2
If the foregoing accurately sets forth our understanding and agreement as to the matters set forth above, please acknowledge your agreement by signing below and returning to me a copy of this letter.
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| Very truly yours, |
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| EDIBLE GARDEN AG INCORPORATED | |||
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| By: | /s/ James Kras | ||
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| Name: | James Kras | |
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| Title: | Chief Executive Officer | ||
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ACKNOWLEDGED and AGREED: |
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EVERGREEN CAPITAL MANAGEMENT LLC |
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By: | /s/ Jeff Pazdro |
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Name: | Jeff Pazdro |
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Title: | Manager |
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