Company: MGLD
Filing Date: 2025-09-23
Form Type: DEF 14A
Source: 0001493152-25-014569
Chunk: 29

Company: Marygold Companies, Inc.
Filing Date: 2025-09-23
Form: DEF 14A
Chunk 29
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 be a participant and the amount involved exceeded or will exceed the lesser of $120,000 or one percent of the average of our total assets as at the year-end for the last two completed fiscal years and in which any of our directors or director nominees, executive officers or beneficial holders of more than 5% of our capital stock, or any immediate family member of, or person sharing the household with, any of these individuals, had or will have a direct or indirect material interest.

Sale of Subsidiary

On June 19, 2025, The Marygold Companies, Inc. (the “Company”) entered into a Stock Purchase Agreement (the “Agreement”) with SKCAL LLC, an Arizona limited liability company (the “Buyer”), whose president, Scott Schoenberger, is also a director of the Company and the beneficial owner of approximately 10.9% of the Company’s outstanding voting stock. Pursuant to the Agreement, the Company agreed to sell 100% of the issued and outstanding shares of its wholly owned Canadian subsidiary, Brigadier Security Systems (2000) Ltd. a Canadian registered corporation (“Brigadier”), located in Regina and Saskatoon, Saskatchewan, Canada (“Brigadier”), to the Buyer for total consideration of $2.2 million, subject to certain adjustment either upwards or downwards in accordance with the differences, if any between the total net working capital (“TNWC”) and the final net working capital (“NWC”), translated to United States currency as of the closing date and under the terms and conditions set forth in the Agreement. The closing (the “Closing”)of the sale of Brigadier took place on July 1, 2025 (“Closing Date”). As required under the Agreement, an initial payment of $0.2 million was paid three business days following the execution and delivery of the Agreement by the parties. An additional $1.0 million was paid on or about the Closing Date. A final payment of $1.1 million was paid on September 1, 2025 in accordance with the adjustment as provided hereinabove. As a result of the upward adjustment, the total purchase price consideration was $2.3 million.

The transaction was reviewed and approved by the Company’s Audit Committee, which consists entirely of independent directors, in accordance with the Company’s related party transaction policy and applicable listing standards. The terms of the transaction were negotiated on an arm’s length basis. The Agreement contains certain representations, warranties, covenants, and rights to indemnification by both of