Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 252

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 252
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 (the “Termination
Date”), Salem Five Cents terminated all obligations under the Loan Agreement and the Demand Note. The Termination Letter further
stated that the Loan Agreement and the Demand Note and certain related loan documents shall be considered no longer in force or effect.
The Company had no funds drawn on the Revolving Line of Credit on the Termination Date.

Acquisition of Assets of Bangarang Enterprises,
LLC

On August 23, 2024, Stran Loyalty Solutions entered
into a Secured Party Sale Agreement, dated as of August 23, 2024 (the “Sale Agreement”), between Stran Loyalty Solutions
and Sallyport Commercial Finance, LLC, a Delaware limited liability company (“Secured Party”), pursuant to which Stran Loyalty
Solutions agreed to purchase, on an as-is basis, all of the rights and interests of Bangarang Enterprises, LLC, a California limited
liability company (d/b/a Gander Group) (“Bangarang”), in and to substantially all of the assets of Bangarang (the “Gander
Group Assets”) from Secured Party as a private sale pursuant to Article 9 of the Uniform Commercial Code (the “Gander Group
Transaction”).

Under the Sale Agreement, the aggregate consideration
for the Gander Group Assets consisted of (a) cash payments by Stran Loyalty Solutions to Secured Party of approximately $1.1 million
(the “Cash Purchase Price”), and (b) the assumption by Stran Loyalty Solutions of certain liabilities totaling approximately
$5.5 million (the “Gander Group Assumed Liabilities”), subject to adjustment, at and following the Gander Group Transaction
Closing (as defined below), including the payment at the Gander Group Transaction Closing of $150 thousand to Warson Capital Partners,
LLC, an investment banking firm retained by Gander Group, for its fees and expenses with respect to the Gander Group Transaction, including
the marketing for sale of the Gander Group Assets (the “Transaction Expense Payment”).  

At the consummation of the transactions contemplated
by the Sale Agreement (the “Gander Group Transaction Closing”), Stran Loyalty Solutions paid the Cash Purchase Price, including
the payment of the Transaction Expense Payment, and assumed the Gander Group Assumed Liabilities. As a result of the Gander Group Transaction
Closing, the Company indirectly acquired substantially all of the assets of Bangarang, including all of the equity of Gander