Stewards, Inc. (SWRD) Form 8-K — Nov 3, 2026
Stewards, Inc. entered into a securities purchase agreement with Crom Structured Opportunities Fund I, LP for up to $22,000,000 of unsecured convertible promissory notes, issuing the first $6,050,000 note for $5,500,000 cash with a 10% OID and 10% interest, maturing twelve months after the October 28, 2026 issue date. The note is convertible starting January 31, 2027 at 90% of the lowest daily VWAP over the prior five trading days, carries full-ratchet anti-dilution protection, and a default triggers repayment at 127.5% of the outstanding balance with 18% default interest.
Key figures
- Debt Amount
- 22000000
- Interest Rate
- 0.1
- Maturity Date
- October 28, 2027 (12 months from issue)
- Gross Proceeds
- 5500000
- Net proceeds
- 4937000
- Reserved shares
- greater of 7,000,000 shares or 2.5x full-conversion amount
- Commitment shares
- 220199
- Exchange cap shares
- 45309740
- Market cap covenant
- $15,000,000 minimum daily market capitalization
- Placement agent fee
- 440000
- Consent pct of votes
- 66.74%
- Default interest rate
- 18% per annum
- Initial note principal
- 6050000
- Warrant exercise price
- 2.498
- Conversion commencement
- January 31, 2027
- Original issue discount
- 10%
- Conversion price formula
- 90% of lowest daily VWAP over 5 trading days prior to conversion
- Default amount multiplier
- 127.5% of principal plus accrued interest
- Stockholder consent votes
- 532420000
- Placement agent warrant shares
- 121109
- Beneficial ownership limitation
- 4.99%
- Equity financing proceeds sweep
- 50% of gross equity financing proceeds to note repayment
- Placement agent expense reimbursement
- 53000
AI analysis
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.