Super League Enterprise enters agreement to exchange debt for preferred stock and cash

Super League Enterprise, Inc. (NASDAQ:SLE) announced Monday that it has entered into an Exchange Agreement with the Michael Keller Trust. According to a statement based on a Securities and Exchange Commission filing, the agreement involves the surrender and forgiveness of a promissory note issued to the Trust on November 19, 2024, which had a principal and interest totaling $1,878,082. The debt restructuring comes as the company, currently valued at $4.38 million in market capitalization, faces challenges with its debt obligations. InvestingPro data shows the company’s current ratio stands at 0.33, indicating potential liquidity concerns.

In exchange for the cancellation of this debt, Super League Enterprise will issue 1,500,000 shares of its Series AAAA Jr. Convertible Preferred Stock to the Michael Keller Trust. Additionally, the company will make cash payments totaling $378,002, to be paid in approximately equal monthly installments of $63,000 each. These payments are scheduled to begin on October 15, 2025, and conclude on March 15, 2026. Despite recent challenges, the stock has shown strong momentum with a 31% gain over the past week. For deeper insights into SLE’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert research reports.

The company’s common stock is listed on the Nasdaq Capital Market under the symbol SLE.

Further details regarding the terms and conditions of the agreement are available in the full Exchange Agreement, which was filed as an exhibit to the company’s Form 8-K submitted with the SEC.

In other recent news, Super League Enterprise, Inc. announced a 1-for-40 reverse stock split to comply with Nasdaq’s $1.00 minimum bid price requirement. This move will significantly reduce the number of outstanding shares and aims to address a deficiency notice from Nasdaq. The company also reported a successful $670,000 stock and warrant offering, with proceeds intended for general corporate purposes and working capital. Additionally, Super League Enterprise has regained compliance with Nasdaq’s minimum bid price rule, as confirmed by a letter from Nasdaq’s Listing Qualifications department.

In corporate governance developments, Michael Keller resigned from the company’s Board of Directors, effective June 30, 2025, with no disagreements cited regarding the company’s operations. During the annual stockholder meeting, several proposals were approved, including amendments to the company’s Charter and the 2025 Omnibus Equity Incentive Plan. The meeting also ratified the appointment of Withum Smith + Brown, PC as the independent auditors for the fiscal year ending December 31, 2025. These developments reflect Super League Enterprise’s ongoing efforts to meet regulatory requirements and enhance its corporate structure.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.