Item 1.01. Entry into a Material Definitive Agreement.
The information set forth below under Item 2.03 is hereby incorporated by
reference into this Item 1.01.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On April 15, 2020, RiceBran Technologies (the "Company") received a loan in the
amount of approximately $1.8 million from Spirit of Texas Bank SSB, (the
"Loan"), pursuant to the Paycheck Protection Program (the "PPP") administered by
the United States Small Business Administration (the "SBA"). The PPP is part of
the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), which
provides for forgiveness of up to the full principal amount and accrued interest
of qualifying loans guaranteed under the PPP.
The Loan was granted pursuant to a Promissory Note (the "Note") dated April 15,
2020 issued by the Company. The Note matures on April 15, 2022 and bears
interest at a rate of 1.00% per annum. Principal and accrued interest are
payable monthly in equal installments through the maturity date, commencing on
November 15, 2020, unless forgiven as described below. The Note may be prepaid
at any time prior to maturity with no prepayment penalties. Loan proceeds may
only be used for the Company's eligible payroll costs (with salary capped at
$100,000 on an annualized basis for each employee), rent, and utilities, in each
case paid during the eight-week period following the Loan disbursement. However,
at least 75 percent of the Loan proceeds must be used for eligible payroll
costs. The Loan will be fully forgiven if (1) proceeds are used to pay eligible
payroll costs, rent, and utilities and (2) full-time employee headcount and
salaries are either maintained during the applicable eight-week period or
restored by June 30, 2020. If not so maintained or restored, forgiveness of the
Loan will be reduced in accordance with the regulations issued by the SBA. The
Company will carefully monitor all qualifying expenses and other requirements
necessary to maximize loan forgiveness.
The foregoing description of the Note does not purport to be complete and is
qualified in its entirety by reference to its full text, a copy of which is
attached as Exhibit 10.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
Exhibit No. Description
10.1 Promissory Note dated as of April 15, 2020
99.1 Press Release issued April 16, 2020
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