Xcel Brands, Inc. has entered into a Settlement Agreement with IM Topco, LLC, IMWHP, LLC, and IMWHP2 LLC under which Xcel will transfer all of its equity interests in IM Topco-representing 17.5% of the outstanding equity interests-to IMWHP2 LLC on October 1, 2025. As part of the agreement, Xcel-CT MFG, LLC, a subsidiary of Xcel, has been released from further liability under specific provisions of a prior License Termination Agreement with IM Topco. Additionally, Xcel will receive a capital appreciation right, entitling it to 15% of the net proceeds that IM Topco and its equity holders receive from any capital transaction exceeding $46 million, if such a transaction occurs on or before September 1, 2032.
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