Item 1.01 Entry into a Material Definitive Agreement
On April 21, 2020, IMAC Holdings, Inc. (the "Company"), entered into a loan with
Pinnacle Bank as the lender ("Lender") in an aggregate principal amount of
$1,691,520 (the "Loan") pursuant to the Paycheck Protection Program (the "PPP")
under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The Loan is evidenced by a promissory note (the "Note") dated April 21, 2020 and
matures on April 21, 2022. The Note bears interest at a rate of 1.000% per
annum, with the first six months of interest deferred. Principal and interest
are payable monthly commencing on November 21, 2020 and may be prepaid by the
Company at any time prior to maturity with no prepayment penalties. In order to
be entitled to forgiveness, funds from the Loan may only be used for payroll
costs, costs used to continue group health care benefits, mortgage payments,
rent, utilities, and interest on other debt obligations under the terms and
conditions outlined by the PPP. The Company intends to use all or a significant
majority of the Loan amount for qualifying expenses. The Loan will not be deemed
a restricted issuance pursuant to the terms of the note purchase agreement
entered into by the Company and Iliad Research & Trading, L.P. on March 25,
2020.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
Reference is made to the disclosure under Item 1.01 above, which is hereby
incorporated in this Item 2.03 by reference.
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