Stewards, Inc. has entered into Amendment No. 3 to a promissory note with FAVO Holdings, LLC, extending the maturity date for the final principal installment of the loan.
The amendment modifies a promissory note dated June 1, 2023, with an original principal amount of $4,700,000. The final installment of $1,600,000 was originally due on May 31, 2026. This payment deadline has been extended through three prior amendments, and the latest agreement pushes the due date to January 15, 2027.
Under the terms of the new agreement, the outstanding principal of $1,600,000 continues to accrue simple interest at a rate of ten percent (10%) per annum. The company calculated an additional $40,000 in interest for the period from October 15, 2026, through January 15, 2027, which is due with the final payment. Additionally, the waiver of a fifteen percent (15%) per annum default interest rate has been extended through January 15, 2027. If the payment is not made in full by that date, the default interest rate will be reinstated.
The transaction involves a related-party agreement. FAVO Holdings is owned 65% by Vincent Napolitano, the Company’s Chairman Emeritus and former CEO, and 35% by Shaun Quin, the Company’s current CEO and director. Mr. Quin recused himself from the Board's deliberation and vote on the amendment. The disinterested members of the Board of Directors approved the amendment by written consent on November 5, 2026, after determining it was fair to the Company.
