Company: MGLD
Filing Date: 2025-01-24
Form Type: 424B5
Source: 0001493152-25-003567
Chunk: 6

Company: Marygold Companies, Inc.
Filing Date: 2025-01-24
Form: 424B5
Chunk 6
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; we enter into a share purchase agreement with a third party that acquires more than 50% of our shares; we recapitalize or reclassify our shares; we transfer a material asset to a subsidiary; we pay a dividend to our stockholders; or any person or group becomes the beneficial owner of 50% of the ordinary voting power of our shares. Upon the occurrence of a trigger event, the Holder may increase the amount outstanding under a Note by 10% for an event described in (a) through (h) above or 5% for an event described in (i) through (n) above (a “ default amount”). Alternatively, the Holder may treat the trigger event as an event of default and demand repayment of the Note, subject to a five-day cure period, together with any applicable default amount.

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Our obligations under the Note are secured by: (i) a pledge of all the common stock the Company owns in USCF Investments, Inc. and (ii) a security interest in all of the assets of the Company. Further, our Chief Executive Officer’s trust, Nicholas and Melinda Gerber Living Trust (“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