Company: SWAGW
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001213900-25-021742
Chunk: 214

Company: Stran & Company, Inc.
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 214
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 Cents indicated that it would terminate the
Revolving Line of Credit because of a policy which prohibited it from agreeing to subordination of its security interest in the Company’s
assets.

Accordingly, on September 9, 2024, Salem Five
Cents delivered a letter (the “Termination Letter”) to the Company that stated that, effective August 26, 2024 (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 the Loan Documents shall no longer be considered in force or effect. The Company
had no funds drawn on the Revolving Line of Credit on the Termination Date.

As of September 30, 2024, the Revolving Line
of Credit had been terminated. As of December 31, 2023, we had not drawn any funds from the Revolving Line of Credit.

Acquisition of Assets of Gander Group

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 Gander Group, in and to substantially all of the assets
of Gander Group (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