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Sadot Group (NASDAQ: SDOT) swaps debt for shares and issues unsecured Severance Note

(High)
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Sadot Group Inc. entered two Debt Settlement and Share Issuance Agreements to resolve outstanding obligations with Rocket Capital NY LLC and former Chief Financial Officer Jennifer Black. With Rocket, Sadot agreed to settle an asserted dispute around a March 2025 future receipts agreement by issuing 26,581 common shares in satisfaction of an agreed settled debt amount of $500,000, coupled with mutual releases and a planned dismissal with prejudice of the related New York court action after Rocket receives the shares. Rocket agreed not to sell more than 15% of Nasdaq daily trading volume in any single day.

With Jennifer Black, Sadot agreed to settle a matured note that had accrued default interest at 22% per annum by issuing 26,199 common shares against an agreed settled debt amount of $466,617.73. Separately, Sadot will issue Ms. Black an unsecured, non-convertible Severance Note for $409,082.17, maturing one year from issuance and bearing simple interest at 10% (rising to 12% after maturity). This agreement also includes mutual releases and a 15% of daily trading volume cap on share sales.

Positive

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Negative

  • None.

Filing Explained

The filing documents conditional share-settlement mechanics and an unsecured non-convertible severance note; Q1 cash equaled 78.1 days of reported operating cash use.

The agreements are signed settlement arrangements, but the filing describes the Rocket and Black shares as to be issued rather than reporting their delivery; Rocket’s debt is extinguished and its release becomes effective only when it receives its shares.

For existing common holders, delivery of either share settlement would increase the total share count and reduce percentage ownership absent offsetting changes.

The Black arrangement also leaves Sadot with an unfunded, unsecured general obligation through a non-convertible Severance Note, payable one year after issuance and bearing 10% simple interest, rising to 12% after maturity.

As of March 31, 2026, cash and equivalents were $679,000; that balance equals 78.1 days of the last reported quarterly operating cash use.

The filing identifies the next documentation point as the company’s intended exhibits to its Form 10-Q for the quarter ended June 30, 2026, while Rocket’s dismissal is due within five business days after receipt of its shares.

Sources and calculations
  • Sadot Group Inc. Form 8-K (2026-07-22)
  • Dilution definition (2026-07-17)
  • Sadot Group Inc. 2026 first-quarter fundamentals (2026-03-31)
  • Cash and equivalents vs quarterly operating cash outflow, in days of cash use $679,000 / ($782,000 / 90) = [object Object]
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 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Rocket asserted balance $599,582.62 Amount Rocket Capital claimed was owed under the March 14, 2025 agreement
Rocket settled debt amount $500,000 Agreed settled debt amount satisfied by issuance of Rocket Settlement Shares
Rocket Settlement Shares 26,581 shares Common stock issued to Rocket Capital to settle agreed debt
Black settled debt amount $466,617.73 Includes $414,635.00 principal and $51,982.73 default interest through July 27, 2026
Black Settlement Shares 26,199 shares Common stock issued to Jennifer Black in settlement of the Black Note
Severance Note principal $409,082.17 Unsecured promissory note issued to Jennifer Black for unpaid severance and compensation
Default interest rate on Black Note 22% per annum Interest applied to outstanding principal after December 31, 2025 maturity
Severance Note interest rates 10.0% to 12.0% per annum 10.0% simple interest, rising to 12.0% on unpaid amounts after maturity
Debt Settlement and Share Issuance Agreement financial
"entered into a Debt Settlement and Share Issuance Agreement (the “Rocket Settlement Agreement”)"
Purchase and Sale of Future Receipts Agreement financial
"relating to that certain Purchase and Sale of Future Receipts Agreement, dated as of March 14, 2025"
default rate financial
"the outstanding principal balance has borne interest at the default rate of 22% per annum"
Default rate is the percentage of loans, bonds, or borrowers that fail to make required payments or otherwise break their payment promise over a given time. Investors watch it because rising defaults signal higher credit risk, lower expected returns, and potential losses across a portfolio—much like a landlord losing rent from a growing share of tenants, which reduces income and can lower property value.
unsecured promissory note financial
"the Company agreed to issue to Ms. Black an unsecured promissory note in the principal amount of $409,082.17"
An unsecured promissory note is a written IOU in which a borrower promises to repay a loan plus any interest but does not pledge any asset as collateral. Investors care because it relies solely on the borrower’s ability to pay—like lending money to someone without holding their watch as security—so it usually carries higher interest and higher risk and ranks below secured debt if the borrower defaults, affecting expected recovery and company credit profile.
original issue discount financial
"promissory note originally issued by the Company on October 22, 2024 in the original principal amount of $625,000 (including $125,000 of original issue discount)"
Original issue discount (OID) is the difference between a debt security’s face value and the lower price at which it is first sold, treated as additional interest that accrues over the life of the instrument. For investors it matters because OID raises the effective yield and changes taxable income and the holding’s cost basis over time — think of buying a $100 voucher for $90 and recognizing the $10 gain as earned interest as the voucher approaches maturity.
mutual releases financial
"The Black Settlement Agreement provides for mutual releases, which preserve specified indemnification, insurance, and expense-reimbursement rights"
A mutual release is a legal agreement in which two parties agree to give up any present or future claims against each other arising from a specified matter, effectively ending disputes and preventing new lawsuits on those issues. For investors, mutual releases matter because they remove or limit potential liabilities and uncertainty—like both sides agreeing to drop their complaints and walk away—which can affect a company’s legal exposure, financial reserves, and perceived risk.

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

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FAQ

What debt did Sadot Group (SDOT) settle with Rocket Capital NY LLC?

Sadot Group and Rocket Capital agreed to fully settle claims under a March 2025 future receipts agreement by issuing 26,581 common shares in satisfaction of an agreed settled debt amount of $500,000, with mutual releases and dismissal with prejudice of the related New York court action.

How did Sadot Group (SDOT) resolve its note owed to Jennifer Black?

Sadot Group settled an agreed debt of $466,617.73 on Jennifer Black’s amended note, including default interest at 22% per annum, by issuing 26,199 common shares. The note had matured on December 31, 2025 and remained unpaid, accruing default-rate interest.

What are the key terms of the new Severance Note issued by Sadot Group (SDOT)?

Sadot Group issued Jennifer Black an unsecured Severance Note for $409,082.17, maturing one year after issuance, bearing simple interest of 10.0% annually, increasing to 12.0% on unpaid amounts after maturity. The note is non-negotiable, non-transferable, and not convertible into company securities.

Are there trading restrictions on the Sadot Group (SDOT) shares issued in these settlements?

Yes. Both Rocket Capital and Jennifer Black agreed that, after receiving their settlement shares, they will not sell more than 15% of the aggregate Nasdaq daily trading volume of Sadot common stock on any single trading day, limiting potential daily share sales.

What mutual release provisions are included in Sadot Group’s (SDOT) settlement agreements?

Both settlement agreements provide for mutual releases. In the Rocket agreement, Sadot’s release is effective on signing and Rocket’s upon share receipt. In the Black agreement, releases preserve specified indemnification, insurance, and expense-reimbursement rights in favor of Jennifer Black.
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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): July 22, 2026

 

Commission File Number 001-39223

 

SADOT GROUP INC.

(Exact name of small business issuer as specified in its charter)

 

Nevada 47-2555533
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)

 

295 E. Renfro Street, Suite 300, Burleson, Texas 76028

(Address of principal executive offices)

 

(832) 604-9568

(Issuer’s telephone number)

 

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 (see General Instructions A.2. below):

 

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))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $0.0001 par value SDOT The Nasdaq Stock Market

 

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.

 

Rocket Capital Settlement

 

On July 22, 2026, Sadot Group Inc. (the “Company”) entered into a Debt Settlement and Share Issuance Agreement (the “Rocket Settlement Agreement”) with Rocket Capital NY LLC (“Rocket”), pursuant to which the Company and Rocket agreed to fully and finally settle, compromise, and extinguish all claims relating to that certain Purchase and Sale of Future Receipts Agreement, dated as of March 14, 2025, between the Company and Rocket (the “Rocket Agreement”), including all claims asserted or assertable in the action captioned Rocket Capital NY LLC v. Sadot Group Inc., Index No. 529734/2025, pending in the Supreme Court of the State of New York, County of Kings (the “Pending Action”).

 

Rocket asserted that the outstanding amount owed by the Company under the Rocket Agreement, including fees and penalties, was $599,582.62, which amount the Company disputed.

 

In full and final settlement, satisfaction, and discharge of an agreed settled debt amount of $500,000 and all other claims relating to the Rocket Agreement, the Company agreed to issue to Rocket 26,581 shares of the Company’s common stock, par value $0.0001 per share (the “Rocket Settlement Shares”). Upon Rocket’s receipt of all of the Rocket Settlement Shares, the settled debt amount will be deemed paid, settled, and extinguished in full. The Rocket Settlement Agreement provides for mutual releases (the Company’s release having become effective upon execution of the Rocket Settlement Agreement and Rocket’s release becoming effective upon its receipt of the Rocket Settlement Shares) and for the parties to file a stipulation dismissing the Pending Action with prejudice, with each party bearing its own costs and attorneys’ fees, within five business days following Rocket’s receipt of the Rocket Settlement Shares. Rocket also agreed that, following issuance, it will not sell on any single trading day a number of shares exceeding 15% of the aggregate trading volume of the common stock on The Nasdaq Capital Market for such trading day.

 

Jennifer Black Settlement

 

On July 23, 2026, the Company entered into a Debt Settlement and Share Issuance Agreement (the “Black Settlement Agreement”) with Jennifer Black, the holder of a promissory note originally issued by the Company on October 22, 2024 in the original principal amount of $625,000 (including $125,000 of original issue discount), as amended on April 25, 2025 (pursuant to which the principal amount was increased to $937,500 in connection with an extension of the maturity date) and as further amended on July 23, 2025 (pursuant to which the maturity date was extended to December 31, 2025 and the conversion provisions thereof were removed) (as so amended, the “Black Note”). Ms. Black previously served as the Company’s Chief Financial Officer.

 

The Company previously made payments on the Black Note in the aggregate amount of $522,865.00, leaving an outstanding principal balance of $414,635.00. The Black Note matured on December 31, 2025 and was not paid at maturity, and the outstanding principal balance has borne interest at the default rate of 22% per annum from such date.

 

Pursuant to the Black Settlement Agreement: (i) in full and final settlement, satisfaction, and discharge of an agreed settled debt amount of $466,617.73, consisting of $414,635.00 of outstanding principal and $51,982.73 of accrued and unpaid default interest calculated through July 27, 2026, the Company agreed to issue to Ms. Black 26,199 shares of common stock (the “Black Settlement Shares”); and (ii) in full and final settlement of amounts owed to Ms. Black for unpaid severance and other compensation in the amount of $409,082.17, the Company agreed to issue to Ms. Black an unsecured promissory note in the principal amount of $409,082.17 (the “Severance Note”). The Severance Note matures on the first anniversary of its issuance, bears simple interest at the rate of 10.0% per annum (increasing to 12.0% per annum on amounts remaining unpaid after maturity), is non-negotiable and non-transferable, is not convertible into or exchangeable for any securities of the Company, and represents an unfunded and unsecured general obligation of the Company. The Black Settlement Agreement provides for mutual releases, which preserve specified indemnification, insurance, and expense-reimbursement rights of Ms. Black, and Ms. Black agreed that, following issuance, she will not sell on any single trading day a number of shares exceeding 15% of the aggregate trading volume of the common stock on The Nasdaq Capital Market for such trading day.

 

The foregoing descriptions of the Rocket Settlement Agreement and the Black Settlement Agreement do not purport to be complete and are qualified in their entirety by reference to the full text of such agreements (including the form of Severance Note attached to the Black Settlement Agreement), copies of which the Company intends to file as exhibits to its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Index of Exhibits

 

Exhibit No. Description
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, thereunto duly authorized.

 

SADOT GROUP INC.

 

By: /s/ Chagay Ravid

Name: Chagay Ravid

Title: Chief Executive Officer

 

Date: July 23, 2026

 

 

Filing Exhibits & Attachments

3 documents