Healthier Choices secures $5M loan facility

Rhea-AI Filing Summary

Healthier Choices Management Corp. entered a new loan agreement with Sabby Volatility Warrant Master Fund, Ltd. The company may borrow up to $5 million for working capital at an interest rate of 12% per annum, with the facility running through December 31, 2026. The debt is unsecured, and the company drew an initial $500,000 on March 27, 2026.

Insights

Credit and capital structure analyst

Healthier Choices adds a costly but flexible $5M unsecured loan.

Healthier Choices Management Corp. obtained an unsecured loan facility of up to $5 million from Sabby Volatility Warrant Master Fund, Ltd. The funds are earmarked for working capital, suggesting a need to support day-to-day operations rather than financing a specific acquisition or project.

The interest rate is 12% per annum, which is relatively high for corporate borrowing and increases ongoing financing costs. The term runs through December 31, 2026, giving a defined window for use and repayment. Unsecured status means no specific collateral is pledged, which avoids encumbering assets but typically reflects higher lender risk pricing.

The company has already drawn $500,000, indicating immediate liquidity needs. The remaining undrawn capacity provides additional flexibility if required. Future disclosures in periodic reports can clarify how much of the facility is ultimately used and how the higher interest burden affects profitability and cash flow.

8-K Event Classification

3 items: 1.01, 2.03, 9.01

3 items

Item 1.01 Entry into a Material Definitive Agreement Business

The company signed a significant contract such as a merger agreement, credit facility, or major partnership.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement Financial

The company incurred a new significant debt or off-balance-sheet obligation.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Loan facility size: $5 million Interest rate: 12% per annum Initial draw: $500,000 +2 more

5 metrics

Loan facility size $5 million Maximum amount available under Loan Agreement for working capital

Interest rate 12% per annum Annual interest rate on amounts borrowed under the facility

Initial draw $500,000 Amount borrowed on March 27, 2026 under the Loan Agreement

Facility term end date December 31, 2026 Stated term of the loan facility

Agreement date March 27, 2026 Date Loan Agreement was executed

Key Terms

Material Definitive Agreement, working capital purposes, unsecured, Emerging growth company, +1 more

5 terms

Material Definitive Agreement regulatory

"Item 1.01 Entry into a Material Definitive Agreement."

A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.

working capital purposes financial

"the Company may borrow up to $5 million to be solely used for working capital purposes."

unsecured financial

"The debt obligations pursuant to the Loan Agreement are unsecured."

Unsecured describes a loan, bond, or claim that is not backed by specific assets or collateral; if the borrower fails to pay, creditors must rely on the borrower’s general promise rather than seizing a pledged asset. For investors this usually means higher risk and potentially higher yield, because unsecured holders stand behind secured creditors in repayment priority—think of lending money to someone without a pledged item to repossess if they don’t pay.

Emerging growth company regulatory

"Emerging growth company"

An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.

Loan Agreement financial

"entered into that certain Loan Agreement (the “Loan Agreement”) with Sabby Volatility Warrant Master Fund, Ltd."

A loan agreement is a formal contract between a borrower and a lender that outlines the terms of a loan, including how much money is borrowed, how and when it will be repaid, and any interest or fees involved. It is like a detailed agreement that ensures both parties understand their responsibilities, helping to prevent misunderstandings. For investors, it provides clarity about the borrower's obligations and the risk involved in lending money.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What loan facility did Healthier Choices Management Corp. (HCMC) enter into?

Healthier Choices Management Corp. entered a Loan Agreement allowing it to borrow up to $5 million from Sabby Volatility Warrant Master Fund, Ltd. The facility is intended solely for working capital, supporting the company’s day-to-day operating needs over the life of the agreement.

What is the interest rate on HCMC’s new loan and how long does it last?

The loan facility carries a 12% per annum interest rate and runs through December 31, 2026. This fixed term defines how long the company can use the borrowing capacity and how long it will incur the associated interest costs on drawn amounts.

How much has HCMC already borrowed under the new loan agreement?

On March 27, 2026, Healthier Choices Management Corp. borrowed an initial $500,000 under the loan agreement. This immediate draw signals a present working capital need, while leaving additional borrowing capacity available for future operational requirements if the company chooses to use it.

Is HCMC’s new $5 million loan secured by company assets?

The loan obligations under the agreement are described as unsecured, meaning they are not backed by specific collateral. This leaves company assets unpledged but typically comes with a higher interest rate, reflected in the 12% annual cost of the facility.

What will Healthier Choices Management Corp. use the loan proceeds for?

The company states that amounts borrowed under the loan facility must be used solely for working capital purposes. Working capital generally covers everyday operating needs, such as inventory, payables, and other short-term obligations, rather than long-term investments or acquisitions.

Who is the lender in HCMC’s March 27, 2026 loan agreement?

The lender is Sabby Volatility Warrant Master Fund, Ltd., which entered into the Loan Agreement with Healthier Choices Management Corp. on March 27, 2026. This entity provides up to $5 million in unsecured working capital financing under the terms described.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 04/02/2026 - 09:29 PM Learn about SEC filing dates

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 27, 2026

HEALTHIER CHOICES MANAGEMENT CORP.

(Exact name of registrant as specified in its charter)

Delaware		001-36469		84-1070932
(State or Other Jurisdiction		(Commission		(I.R.S. Employer
of Incorporation)		File Number)		Identification No.)

3800 N. 28^th Way, #1

Hollywood, Florida 33020

(Address of Principal Executive Office) (Zip Code)

(888) 766-5351

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 1.01 Entry into a Material Definitive Agreement.

On March 27, 2026, Healthier Choices Management Corp. (the “Company”) entered into that certain Loan Agreement (the “Loan Agreement”) with Sabby Volatility Warrant Master Fund, Ltd. (the “Lender”).

Pursuant to the Loan Agreement, the Company may borrow up to $5 million to be solely used for working capital purposes. The interest rate for amounts borrowed is 12% per annum. The term of the facility is through December 31, 2026. The debt obligations pursuant to the Loan Agreement are unsecured. On March 27, 2026, the Company borrowed an initial amount of $500,000 pursuant to the Loan Agreement.

The foregoing summary of the Loan Agreement is not complete and is qualified in its entirety by reference to the actual Loan Agreement, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description
10.1		Loan Agreement, dated as of March 27, 2026, among Healthier Choices Management Corp., and Sabby Volatility Warrant Master Fund, Ltd.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HEALTHIER CHOICES MANAGEMENT CORP.
Date: April 2, 2026	By:	/s/ Jeffrey Holman
		Jeffrey Holman, Chief Executive Officer

Filing Exhibits & Attachments

4 documents

Agreements & Contracts

• EX-10.1 EX-10.1 238.5 KB

Other Documents

• EX-101 XBRL SCHEMA FILE 3.0 KB
• EX-101 XBRL LABEL FILE 33.4 KB
• EX-101 XBRL PRESENTATION FILE 21.8 KB