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AI brief of an SEC Form 8-K · Stewards, Inc. (SWRD)

Stewards Issues $6.05 Million Convertible Note to Crom Fund, Priced at 10% Discount

Negative Impact 4 of 5 financing Written later

On October 28, 2026, Stewards, Inc. sold an unsecured convertible promissory note with a principal amount of $6,050,000 to Crom Structured Opportunities Fund I, LP for $5,500,000. The note matures in 12 months, and the investor can convert it into common stock from January 31, 2027, at 90% of the lowest daily VWAP over the prior five trading days, which could add substantial dilution for shareholders. The company plans to use about $4,937,000 in net proceeds to fund its proposed acquisition of PIXL, LLC, though no definitive agreement has been signed.

Key points

  • Note: $6,050,000 principal, $5,500,000 purchase price, 10% original issue discount, due in 12 months
  • Conversion from January 31, 2027 at 90% of the lowest five-day VWAP, with a full-ratchet anti-dilution adjustment
  • Share reserve of at least 7,000,000 shares; issuance above 45,309,740 shares (19.99%) requires stockholder approval, given by majority holders by written consent on October 28, 2026
  • Placement agent E.F. Hutton & Co. received a $440,000 cash fee and warrants for 121,109 shares at $2.498

The filing

CompanyStewards, Inc. (SWRD)
Form8-K, current report
Filed with the SECNov 3, 2026, 5:27 PM ET
Accession number0001663577-26-000333

Items reported: 1.01 Material Definitive Agreement2.03 New Direct Financial Obligation3.02 Unregistered Equity Sale3.03 Change to Shareholder Rights5.07 Shareholder Vote Results

Read the filing on SEC.gov ↗

Written by AI on Nov 9, 2026, 11:43 AM ET, from this filing only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on November 03, 2026.

Briefs are written by AI from the filing text and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the AI's reading of the filing for shareholders, not a price forecast. Not investment advice.