Item 1.01 Entry Into Material Definitive Agreement.
As of
The unforgiven portion of the PPP loans is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months. The Company intends to use the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loans, we cannot assure you that we will not take actions that could cause the Company to be ineligible for forgiveness of the loans, in whole or in part.
No assurance is provided that the Company will obtain forgiveness of the PPP loans in whole or in part.
The foregoing description of the PPP loans does not purport to be complete and is qualified in its entirety by reference to the full text of the form of Promissory Note attached to this Form 8-K as Exhibit 10.1 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The discussion of the PPP loans set forth in Item 1.01 of this Current Report on Form 8-K is incorporated in this Item 2.03 by reference.
Item 5.07 Submission of Matters to a Vote of Security Holders.
On
Proposal 1: To approve an amendment to our Certificate of Incorporation, as
amended, to effect a reverse stock split of all of the outstanding shares of our
common stock, at a specific ratio from 1-for-100 to 1-for-10,000, and grant
authorization to our Board of Directors to determine, in its discretion, the
specific ratio and timing of the reverse split at any time on or before
The stockholder approval of the above proposal will not be effective until 20
days after an information statement that has been filed with the
Item 9.01 Financial Statements and Exhibits.
Exhibit No. Description 10.1 Form of Promissory Note, withEvolve Bank & Trust 2
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