Company: MGLD
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001641172-25-009260
Chunk: 59

Company: Marygold Companies, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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 the issuance and sale of the Note and ending 24 months later, Holder
will have the right, but not the obligation, with Company’s prior written consent, to reinvest up to an additional $10,000,000
in the Company on the same terms and conditions as the Notes (structured as two tranches of $5,000,000 each).

The
Company engaged Maxim Group LLC to serve as placement agent for the transaction between the Company and Holder in exchange for an aggregate
commission equal to 7% of the gross cash proceeds received from the sale of the Notes.

As
of March 31, 2025, the note payable balance outstanding, net of the original issue discount and fees paid, was $3.7 million, all of which
is due within 12 months from March 31, 2025 assuming no deferral rights are exercised. The effective interest rate for this note is 41.3%.

As
of June 30, 2024, Brigadier had an outstanding principal balance of $0.3 million due related to the purchase of its Saskatoon office
land and building. The bank loan matured and was paid off in full in July 2024.

    15

NOTE
9. STOCKHOLDERS’ EQUITY

Public
Stock Offering

On
January 28, 2025, the Company closed on the sale of an aggregate of 2,050,000 shares of its common stock, $0.001 par value per share
(“Common Stock”), at a price to the public of $1.10 per share (before deduction of underwriting discounts and commissions),
in a firm commitment underwritten public offering pursuant to an underwriting agreement, dated January 26, 2025 (“Underwriting
Agreement”), between the Company and the Maxim Group LLC (“Maxim”) as sole underwriter and book-running manager for
the offering (“Offering”). Pursuant to the Underwriting Agreement, the Company granted the underwriter a 45-day option to
purchase up to an additional 307,500 shares of its Common Stock at the public offering price before deduction of underwriting discounts
and commissions (“Overallotment Option”). Maxim did not exercise its Overallotment Option.

The
net proceeds of the offering to the Company, after deducting underwriting discounts and commissions and offering expenses, was $1.8 million.
The Company intends to use a portion of the net proceeds from the Offering to retire or reduce debt,