Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 61

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 61
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 amended (“Securities Act”), and the Securities Exchange Act of 1934, as amended (“Securities
Exchange Act”), as well as liabilities arising from the material breach of any of the representations and warranties the Company
made in the Underwriting Agreement, and to contribute to payments that Maxim may be required to make for these liabilities.

The
foregoing description of the Underwriting Agreement is not complete and is qualified in its entirety by reference to the full text of
the Underwriting Agreement, a copy of which was filed as an exhibit to its Current Report on Form 8-K filed with the Securities and Exchange
Commission on January 27, 2025.

The
foregoing does not constitute an offer to sell or the solicitation of an offer to buy these securities, 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.

On March 7, 2025, we entered into an Equity Distribution Agreement (“EDA”)
with Maxim pursuant to which we may sell from time-to-time shares of our common stock having an aggregate offering price of up to $4.65
million through or to Maxim, as sales agent or principal. We have agreed to pay Maxim a commission equal to three percent (3%) of the
aggregate gross proceeds from the sale of any shares through Maxim under the EDA, reimburse Maxim for certain legal fees and disbursements,
and have agreed to indemnify Maxim against certain liabilities under the Securities Act. The EDA requires that, until May 28, 2025,
the date of the expiration of the standstill period in our Underwriting Agreement with Maxim for the Offering described above, sales of
our shares of common stock be made at a minimum price per share of $1.50 unless, at any time, Maxim and the Company mutually agree upon
a lower minimum price per share. During the quarter ended March 31, 2025, we did not sell any shares pursuant to the EDA.  The offer
and sale, if any, of our shares of common stock under the EDA will be made pursuant to our shelf registration statement on Form S-3 which
was filed with the SEC on December 18, 2024, and became effective on December 27, 2024, the base prospectus included therein, and a prospectus
supplement that was filed