S&W Seed Company has entered into an amendment to their existing Credit and Security Agreement with ABL OPCO LLC, known as the Mountain Ridge Credit Agreement. This amendment, formalized on June 18, 2025, involves a Letter Agreement under which the lenders have advanced additional revolving loans totaling $1,080,000. These funds are allocated for payroll, a retainer for legal and professional services, and a premium for directors and officers liability insurance. Additionally, the lenders have agreed to provide daily advances of $6,500 to cover payroll for key employees, subject to cancellation with 24-hour notice. The amendment also stipulates an enhanced interest rate of 18% per annum for obligations exceeding the borrowing base. This financial maneuver follows a notice of default received by S&W Seed Company, indicating a breach of the original agreement terms.
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