Cemtrex Inc. (NASDAQ:CETX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On March 3, 2020, Vicon Industries, Inc. (“Vicon”), a subsidiary of Cemtrex, Inc. (The “Company”) amended the $5.6 million Term Loan Agreement (the “Agreement”) with NIL Funding Corporation (“NIL”). Upon closing, $500,000 of outstanding borrowings were repaid to NIL, additionally, another $500,000 is to be paid in one year. The Agreement requires monthly payments of accrued interest that began on October 1, 2018. In addition, the Agreement requires equal monthly principal payments of $25,000, plus accrued interest, that began on April 1, 2019 until the amended loan maturity date of March 30, 2022, at which point the full outstanding balance of the loan and accrued interest are due.
The Agreement provides for a formula that limits outstanding indebtedness based upon eligible accounts receivable and is secured by a first priority security interest in substantially all of the Company’s assets. Borrowings under the Agreement bear interest at a rate of 8.85% per annum. The Agreement includes provisions that are customarily found in similar financing agreements, including a financial covenant which requires the Company to maintain a minimum level of inventory and liquid assets as defined in the Agreement.
The foregoing is a summary of the terms of the Agreement, does not purport to be complete, and is subject to and qualified in its entirety by reference to the text of such Agreement, which has been filed as an exhibit to this Current Report on Form 8-K.
| 10.1 | Amendment of the Term Loan Agreement between Vicon and NIL Funding, dated March 4, 2020 |
CEMTREX INC Exhibit
EX-10.1 2 ex10-1.htm Exhibit 10.1 THIS FIRST AMENDMENT TO TERM LOAN AGREEMENT AND RELATED LOAN DOCUMENTS WITH CONSENT OF GUARANTORS IS SUBJECT TO ARBITRATION PURSUANT TO THE FEDERAL ARBITRATION ACT AND/OR §15-48-10 OF THE SOUTH CAROLINA CODE OF LAWS (1976),…
To view the full exhibit click here
About Cemtrex Inc. (NASDAQ:CETX)
Cemtrex, Inc. is a diversified industrial and manufacturing company. The Company operates in a range of business segments and provides solutions to manufacturing industries. The Company provides electronic manufacturing services of electronic system assemblies, instruments and emission monitors for industrial processes, and industrial air filtration and environmental control systems. The Company, through its Electronics Manufacturing Services group, provides end-to-end electronic manufacturing services, which include product design and sustaining engineering services, systems integration, testing services and assembled electronic products. The Company, through its Environmental Products and Systems group, sells air filtration and environmental control products to a range of industrial and manufacturing industries. The Company, under the Griffin Filters brand, provides an air filtration and environmental control equipment to various industries.