ALR TECHNOLOGIES INC. (OTCMKTS:ALRT) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01
On December 11, 2019, ALR Technologies Inc. (“ALRT” or the “Company”) and Mr. Sidney Chan agreed to amend the line of credit provided by Mr. Chan to the Company to increase the borrowing limit of the line of credit by $1,800,000, from $8,500,000 to $10,300,000. In connection with providing the increase in the borrowing limit of the line of credit, the Company will grant Mr. Chan the option to acquire 120,000,000 shares of common stock at a price of $0.015 per share for a term of five years.
Mr. Chan and the Company had previously entered into a credit agreement on March 6, 2011, which was subsequently amended by amending agreements dated October 24, 2011, June 15, 2012, December 28, 2012, April 1, 2014, May 29, 2015 and July 1, 2016 whereby Mr. Chan agreed to make available to the Company a credit line equal to an aggregate of $8,500,000 for the Company’s operations. Under the terms of the arrangement, the amount borrowed by the Company bears simple interest at a rate of 1% per month. The amount borrowed is secured by a general security agreement over the assets of the Company and is due on demand. As at September 30, 2019, the Company had fully drawn down the $8,500,000 borrowing limit and had been advanced additional funds of $1,044,623.
The line of credit will continue to bear interest of twelve (12) percent per annum on amounts borrowed and will continue to be secured by a general security agreement. Advances totaling approximately $1,200,000 provided by Mr. Chan to the Company in excess of the previous borrowing limit of $8,500,000 will be incorporated as advances under this new amended agreement and will bear interest from the date the amount was received by the Company. The remaining amounts available under the line of credit will be used to fund operations, working capital and general corporate purposes.
The amending agreement has not yet been executed. The Company and Mr. Chan are working to formalize the agreement under terms and conditions that customary of a borrowing arrangement of this nature.
Mr. Chan is the Chairman of the Board of Directors and the Chief Executive Officer of the Company.
About ALR TECHNOLOGIES INC. (OTCMKTS:ALRT)
ALR Technologies Inc. is a medical device company. The Company is engaged in providing remote monitoring and care facilitation for patients with diabetes. The Company focuses on commercializing its Heath-e-Connect System. The Company has developed a compliance monitoring system that will allow healthcare professionals to remotely monitor patient health conditions and provide patient health management. The Company’s products utilize Internet-based technologies to facilitate healthcare provider’s ability to monitor their patient’s health and ensure adherence to health maintenance activities. The Company’s Diabetes Care Facilitators and Health Data Monitors will track that data and based on clinician-approved protocols, will facilitate care interventions when patients show blood glucose readings that are out of an acceptable range or if they are failing to test their blood glucose as prescribed.