Related Party Transactions

9 Months Ended

Mar. 31, 2024

Related Party Transactions

Related Party Transactions

Note 10. Related Party Transactions

On April 1, 2024, the Company entered into a lease agreement with MFA 2510 Merchant LLC.  The lease is a for approximately 10,000 square feet of warehouse and office space, located in Odessa, Florida for $20,060 per month on a triple net basis.  The initial term is five years. 

On June 13, 2024, Upexi, Inc. (the “Company”) entered into a Stock Purchase Agreement (“SPA”) pursuant to which the Company sold one hundred percent (100%) of the issued and outstanding equity (the “Interests”) of its wholly owned subsidiary VitaMedica, Inc. to three investors (the “Buyers”). One of the minority Interest Buyers is Allan Marshall, the Company’s Chief Executive Officers.  The purchase price for the stock was Six Million Dollars ($6,000,000), subject to certain customary post-closing adjustments.  The proceeds of the transaction will be used for working capital, the reduction of debt and the reduction of other liabilities currently outstanding. 

In June 2022, the Company entered into a promissory note with a member of management.  The loan was for $1,500,000 and has a two-year term with an interest rate of 8.5% per annum with an additional PIK of 3.5% per annum.   On November 15, 2023, the Company executed an amendment to the promissory note with Mr. Marshall, providing for the payment of interest only for 18 months at an interest rate of 12% per annum and thereafter, the amortization of the note over a 12-month period, starting in June of 2025.  The principal currently outstanding is $1,500,000.  In addition to this, the Company issued Mr. Marshall a warrant to purchase up to 375,000 shares of the Company’s common stock at a per share price of $1.10.  The note has been classified as long-term in the financial statements.