Amass Brands Enters SAFE Agreement with Afterdream

Amass Brands announced that it has entered into a simple agreement for future equity, or SAFE, in Afterdream, representing the right to receive at least a 15.67% ownership interest in Afterdream on a fully diluted basis upon a future qualifying financing or liquidity event. The transaction was structured as a SAFE, an instrument that enables both parties to complete the investment without requiring a formal valuation of Afterdream at this stage. The SAFE converts into equity upon a future qualifying financing or triggering event, and does not result in the issuance of shares or stockholder dilution prior to conversion. Unlike a convertible note, the instrument carries no interest rate, maturity date, or repayment obligation. In the event of a dissolution or liquidity event occurring prior to conversion, the SAFE entitles Amass to receive the greater of its invested amount or its as-converted equity value, a preference that ranks senior to the rights of common stockholders.