MDRR Medalist Diversified REIT, Inc. - 8-K

Item 8.01

Other Events.

Own Digital Treasury TRS, LLC (“OWN”), a wholly-owned subsidiary of Medalist Diversified, Inc. (“Medalist” and together with OWN, the “Company”), has entered into a Pledged Asset Line Agreement (the “PAL Agreement”) by and between OWN and Charles Schwab & Co., Inc. (“Schwab”). The PAL Agreement provides for a revolving, non-purpose margin credit facility, secured by a first-priority lien on a designated brokerage account maintained at Schwab (the “Collateral Account”), of an amount based on the collateral value in the Collateral Account. Based on the collateral value in the Collateral Account as of May 21, 2026, the Company is permitted to borrow up to $15.8 million under the PAL Agreement.

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Borrowings under the PAL Agreement bear interest at a variable rate based on the Secured Overnight Financing Rate (SOFR) plus an applicable margin.  The PAL Agreement contains customary events of default, including, without limitation, failure to make any payment upon demand or otherwise when due or deposit additional collateral when required under the PAL Agreement; initiation of a bankruptcy petition or other insolvency proceeding; any event of default under any security agreement executed in connection with the Collateral Account; or the insufficiency of the value of the financial assets in the Collateral Account.

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