0001493152-26-021705
SEC filingBranchOut Food Inc. received $750,000 cash from Kaufman's full exercise of a 500,000-share warrant while extending and modifying terms of its $2,900,000 outstanding Convertible Note.
The agreement provides BranchOut Food Inc. with immediate $750,000 in working capital from the full cash exercise of a previously issued warrant, strengthening liquidity without dilution from new issuance. In exchange, the Company grants concessions on its existing Convertible Note with Kaufman Kapital LLC, originally issued July 15, 2024, by extending the maturity by one year to December 31, 2027 and cutting the interest rate to 8% from 12%, lowering future interest costs on the $2.9 million outstanding principal. A key restriction limits prepayments to $2.4 million before late 2027, preserving Kaufman's investment exposure. Registration obligations ensure liquidity for the new shares and potential interest conversions, supporting Kaufman's exit strategy while committing the Company to SEC filings within tight timelines.