Item 1.01Item 1.01 - Entry into Material Agreement
Item 1.01 Entry into a Material Definitive Agreement.
Background
As previously disclosed, on February 9, 2026, Sadot
Group Inc. (the “Company”) issued four 8% Unsecured OID Debentures each in the original principal amount of $271,739.13, in
the aggregate original principal amount of $1,086,956.52 (collectively, the “February Debentures”), pursuant to those certain
Securities Purchase Agreements, each dated as of February 6, 2026, between the Company and the respective purchasers thereunder (the “February
SPAs”). The February Debentures matured on May 30, 2026 and remained outstanding.
As previously reported, on August 17, 2026, one of
the February Debentures was settled and extinguished in full in exchange for the issuance of 32,909 shares of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”), and the maturity date of the remaining February Debentures was extended
to October 31, 2026. As further previously reported, on August 19, 2026, a second February Debenture was assigned to a third-party assignee
and was settled and extinguished in full in exchange for the issuance of 33,968 shares of Common Stock. As a result of those issuances,
the fixed conversion price of the July Note (as defined below) was adjusted, most recently to $8.00 per share. Following such settlements,
two February Debentures remained outstanding, in the aggregate principal amount of $543,478.26.
Assignment of Remaining February Debentures
On August 21, 2026, Cecilia Castro and Harding Castro,
as tenants in common, the holders of one of the two remaining February Debentures, and 622 Capital, LLC, the holder of the other remaining
February Debenture (such February Debentures, collectively, the “Assigned Debentures”), assigned the Assigned Debentures to
a third-party assignee (the “Assignee Debenture Holder”) pursuant to a single Assignment and Assumption of Debentures among
such holders, the Assignee Debenture Holder and, solely for certain limited purposes, the Company (the “Assignment”), for
a cash purchase price paid by the Assignee Debenture Holder to each such holder equal to the outstanding principal amount of its Assigned
Debenture. The Company consented to the assignments and registered the transfer of the Assigned Debentures. Upon consummation of the Assignment,
the Assignee Debenture Holder held 100% of the outstanding principal amount of the February Debentures.
Debt Settlement and Share Issuance Agreement
On August 21, 2026, the Company and the Assignee Debenture
Holder entered into a Debt Settlement and Share Issuance Agreement (the “Settlement Agreement”), pursuant to which the entire
outstanding principal amount of the Assigned Debentures (US$543,478.26 in the aggregate) was settled, extinguished and discharged in full
in exchange for the issuance to the Assignee Debenture Holder of an aggregate of 67,936 shares of Common Stock (the “Settlement
Shares”) at a fixed price of $8.00 per share, such number having been determined by dividing the outstanding principal amount of
each Assigned Debenture by $8.00 and rounding up to the nearest whole share (33,968 Settlement Shares in respect of each Assigned Debenture).
The Settlement Shares are to be issued within two (2) business days of the date of the Settlement Agreement in reliance upon the exemption
from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), provided by Section 3(a)(9)
thereof. Following the settlement, no February Debentures remain outstanding.
The issuance of the Settlement Shares is subject to
a 4.99% beneficial ownership limitation (which may be increased by the Assignee Debenture Holder to 9.99% upon 61 days’ prior notice),
an aggregate exchange cap of 19.99% of the outstanding Common Stock in accordance with Nasdaq Listing Rule 5635(d) absent stockholder
approval (measured, on an aggregated basis with the settlements described above, against the number of shares of Common Stock outstanding
immediately prior to the issuance made on August 17, 2026), and a daily leak-out limitation of 15% of the daily trading volume of the
Common Stock. The Settlement Agreement contains mutual releases, effective upon the Assignee Debenture Holder’s receipt of the Settlement
Shares, and customary representations, warranties and covenants of the parties.
Holders’ Approval
In connection with the foregoing, the Assignee Debenture
Holder, as the holder of 100% of the outstanding principal amount of the February Debentures following the Assignment, executed and delivered
a Written Approval and Consent of Holders, dated as of August 21, 2026 (the “Holders’ Approval”), pursuant to which
it approved and consented to the Settlement Agreement and the transactions contemplated thereby for purposes of Section 8 of the February
Debentures. Because no February Debentures were held by any other person following the Assignment, no waiver of the equal treatment provisions
of Section 9 of the February Debentures or Section 4.11 of the February SPAs was required in connection with the settlement.
July Note Holder Consent
On August 21, 2026, the Company entered into a Consent, Waiver and Acknowledgment
(the “July Note Consent”) with the holder of a senior secured convertible promissory note of the Company in the original principal
amount of $4,000,000 issued on July 16, 2026 (the “July Note”) issued pursuant to that certain Securities Purchase Agreement,
dated as of July 16, 2026 (the “July SPA”). Pursuant to the July Note Consent, the holder of the July Note consented to the
Assignment, the Settlement Agreement and the other transactions described above (collectively, the “Proposed Transactions”)
and provided a one-time waiver of applicable provisions of the July SPA, including the variable rate transaction and participation provisions
thereof, in each case solely with respect to the Proposed Transactions, subject to the satisfaction or waiver of certain conditions. The
Company also agreed to reimburse the holder of the July Note for its fees and expenses incurred in connection with the consent.
EPFA Consent
On August 21, 2026, the Company also entered into
a Consent, Waiver and Acknowledgment (the “EPFA Consent”) with the investor signatory to that certain Equity Purchase Facility
Agreement, dated as of July 16, 2026 (the “EPFA”), pursuant to which the Company may issue and sell to the investor up to
$100.0 million of shares of Common Stock, subject to the terms and conditions thereof. Pursuant to the EPFA Consent, the investor consented
to the Proposed Transactions and provided a one-time waiver of applicable provisions of the EPFA, in each case solely with respect to
the Proposed Transactions.
Exhibits
The foregoing descriptions of the Assignment, the
Settlement Agreement, the July Note Consent and the EPFA Consent do not purport to be complete and are qualified in their entirety by
reference to the full text of such documents, copies of which are filed as Exhibits 10.1, 10.2, 10.3, and 10.4, respectively, to this
Current Report on Form 8-K and are incorporated herein by reference.
Item 3.02Item 3.02 - Unregistered Sales of Equity
Item 3.02 Unregistered Sales of Equity Securities.
The information set forth in Item 1.01 of this Current
Report on Form 8-K is incorporated by reference into this Item 3.02. The Settlement Shares are being issued to the Assignee Debenture
Holder, as the existing holder of the Assigned Debentures, exclusively in exchange for the surrender, settlement and extinguishment of
the Assigned Debentures, without the payment of any commission or other remuneration for soliciting such exchange, in reliance upon the
exemption from the registration requirements of the Securities Act provided by Section 3(a)(9) thereof.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking
statements. Forward-looking statements may include, but are not limited to, statements related to the settlement of the Assigned Debentures,
the issuance of the Settlement Shares and the transactions contemplated by the agreements described herein, as well as statements, other
than historical facts, that address activities, events or developments that the Company intends, expects, projects, believes or anticipates
will or may occur in the future. These statements are often characterized by terminology such as “believes,” “hopes,”
“may,” “anticipates,” “should,” “intends,” “plans,” “will,” “expects,”
“estimates,” “projects,” “positioned,” “strategy” and similar expressions and are based
on assumptions and assessments made in light of management’s experience and perception of historical trends, current conditions,
expected future developments and other factors believed to be appropriate. Forward-looking statements in this Current Report on Form 8-K
are made as of the date of this Current Report on Form 8-K, and the Company undertakes no duty to update or revise any such statements,
whether as a result of new information, future events or otherwise. Forward-looking statements are not guarantees of future performance
and are subject to risks and uncertainties, many of which are outside of the Company’s control. Important factors that could cause
actual results, developments and business decisions to differ materially from forward-looking statements are described in the sections
titled “Risk Factors” in the Company’s filings with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as reports on Form 8-K.