Company: MGLD
Filing Date: 2025-03-07
Form Type: 424B5
Source: 0001493152-25-009595
Chunk: 8

Company: Marygold Companies, Inc.
Filing Date: 2025-03-07
Form: 424B5
Chunk 8
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Gerber Trust”), provided: (i) a guaranty of our obligations to the Holder under the Note and (ii) a pledge of all of our common stock owned by the Gerber Trust.

Beginning on the date that is six months from the issuance date until the applicable Note is paid in full, each month the Holder has the right to require the Company to redeem up to an aggregate of $400,000 with respect to the Initial Note and $200,000 with respect to the Subsequent Note, if issued, plus any interest accrued thereunder and an additional amount payable equal to 6% of the principal amount and accrued interest redeemed. We have the right to defer such redemption payments that Holder could otherwise elect to make three times by providing advance written notice to the Holder. If we exercise our deferral right, the outstanding balance automatically increases by 0.85% for each instance that the deferral right is exercised by us, which cannot be exercised more than once every ninety calendar days.

Pursuant to the terms of the Purchase Agreement, beginning on the date of the issuance and sale of the Note and ending 24 months thereafter, the Holder will have the right, but not the obligation, with our prior written consent, to reinvest up to an additional $10,000,000 in us on the same terms and conditions as the Notes (structured as two tranches of $5,000,000 each).

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

As of December 31, 2024, the Note payable balance outstanding, net of the original issue discount and fees paid, was $3.9 million, of which $3.5 million is due within 12 months from December 31, 2024, and the remaining balance of $0.4 million is due prior to September 30, 2026.

Risk Factors

Investing in our securities involves a high degree of risk. Prior to deciding to invest in our securities, you should carefully consider the specific factors discussed under the heading “Risk Factors”in this prospectus supplement, together with all the other information contained in or incorporated by reference in this prospectus supplement. You should also see the risk factors discussed under the heading “Risk Factors”under Item 1A of our Annual Report on Form 10-K for the year ended June 30, 202