Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
Effective
The Credit Facility is evidenced by a credit agreement, (the "Credit
Agreement"), a Line of Credit Note (the "Note") and other customary ancillary
documents related thereto, executed on
The Company has not requested any advances under the Credit Facility and there is currently no outstanding balance.
There are no mandatory prepayments or line reductions. The Company may elect to prepay advances in whole or in part at any time without penalty.
Amounts advanced under the Credit Facility will accrue interest at a variable
rate equal to the sum of the adjusted LIBOR rate (reset monthly) multiplied by a
statutory reserve rate for eurocurrency funding as established by the
Events of default under the Credit Facility include, without limitation, a change in control, a material adverse change in the business of the Company or in its ability to perform its obligations under the Credit Facility, and other circumstances that JPMC believes may impair the prospect of repayment. If an event of default occurs, JPMC is entitled to take enforcement actions, including accelerating amounts due under the Credit Facility and exercising setoff rights.
The foregoing description of the Credit Facility does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement and Note, a copy of each of which is filed as Exhibits 10.1 and 10.2, respectively, to this Form 8-K and are incorporated herein by reference. A copy of the press release announcing the Credit Facility is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description of Document 10.1 Credit Agreement, dated as ofJuly 12, 2021 , by and amongCharles & Colvard, Ltd. , andJPMorgan Chase Bank, N.A . 10.2 Line of Credit Note, dated as ofJuly 12, 2021 , byCharles & Colvard, Ltd. toJP Morgan Chase Bank, N.A. 99.1 Press Release, datedJuly 13, 2021
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