Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 246

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 246
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, dated as of August 23, 2024 (the “Sale Agreement”),
with Sallyport Commercial Finance, LLC, a Delaware limited liability company (“Secured Party”), pursuant to which the Purchaser
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 “Bangarang
Assets”) from Secured Party as a private sale pursuant to Article 9 of the Uniform Commercial Code (the “Bangarang Transaction”).

Under the Sale Agreement, the aggregate
consideration for the Bangarang Assets consisted of (a) cash payments by the Purchaser to Secured Party of $1,099 (the “Cash Purchase
Price”), and (b) the assumption by the Purchaser of certain liabilities totaling approximately $5.5 million (the “Assumed
Liabilities”), subject to adjustments, as described below, at and following the Closing (as defined below), including the payment
at the Closing of $150 to Warson Capital Partners, LLC, an investment banking firm retained by Bangarang, for its fees and expenses with
respect to the Bangarang Transaction, including the marketing for sale of the Bangarang Assets (the “Transaction Expense Payment”).  

As a result of the Closing, the Company
indirectly acquired substantially all of the assets of Bangarang, including all of the equity of Gander Group Louisiana, LLC, a Louisiana
limited liability company (“GGLA”), which will be a wholly-owned subsidiary of the Purchaser.

The Company has not completed the
purchase price allocation of this acquisition prior to the issuance of these financial statements, and an estimate of the financial effect
of the transaction cannot be made. All other business combination disclosures are not available due to the proximity of the acquisition
to the issuance of these financial statements.

Factoring Arrangement and Termination
of Revolving Line of Credit

On August 23, 2024, Stran Loyalty
Solutions entered into a factoring arrangement with a third party to provide accounts receivable financing to Stran Loyalty Solutions.
In connection with the factoring arrangement, the Company provided a secured guarantee of Stran Loyalty Solutions’ obligations
under the factoring arrangement. Prior to this arrangement, the Company had been a party to the Revolving Demand Line of Credit