CREATIVE REALITIES, INC. (OTCMKTS:CREX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
Seventh Amendment to Loan and Security Agreement and Secured Convertible Special Loan Promissory Note.
On December 30, 2019, Creative Realities, Inc. (the “Company”) entered into a Seventh Amendment to Loan and Security Agreement (the “Seventh Amendment”) with its subsidiaries and Slipstream Communications, LLC (“Lender”). to the Seventh Amendment, Lender made a $2,000,000.00 loan to the Company (the “Special Loan”) under the terms of the Company’s existing Loan and Security Agreement with Lender (as amended by the Seventh Amendment, the “Loan Agreement”). The Company used $1,100,000.00 of the Special Loan proceeds to extinguish an approximately $2,700,000.00 accrued expense owed by the Company and its subsidiary, ConeXus World Global, LLC, to a vendor.
The Special Loan is evidenced by a Secured Convertible Special Loan Promissory Note (the “Note”). The Note bears simple interest at 8% per annum, of which 6% is payable in cash (the “Interest and 2% is payable in kind as additional principal under the Note (“Additional Principal”), which is payable monthly commencing February 1, 2020. The entire unpaid principal balance of the Note (including the Additional Principal) together with all accrued but unpaid interest is due on June 30, 2021 (the “Maturity Date”). The Company may prepay the Note, in whole or in part, at any time and from time to time, without penalty or premium. The principal (including the Additional Principal) and accrued but unpaid interest will be converted into a new class of senior preferred stock of the Company upon any event of default or in the event that the Company does not refinance the Note prior to October 1, 2020, with such class of senior preferred stock of the Company to be created in advance of such conversion, having those rights and preferences set forth in the Loan Agreement and as otherwise agreed to by the Company and Lender.
The Seventh Amendment and the Note are filed as Exhibits 10.1 and 10.2 to this report, respectively, and the foregoing descriptions are qualified in their entirety by reference thereto.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits |
| Exhibit No. | Description |
| 10.1 | Seventh Amendment to Loan and Security Agreement dated December 30, 2019 by and among the Company, its subsidiaries and Slipstream Communications, LLC. |
| 10.2 | Secured Convertible Special Loan Promissory Note dated December 30, 2019 issued by the Company to Slipstream Communications, LLC. |
CREATIVE REALITIES, INC. Exhibit
EX-10.1 2 f8k123019ex10-1_creative.htm SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT DATED DECEMBER 30,…
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About CREATIVE REALITIES, INC. (OTCMKTS:CREX)
Creative Realities, Inc. is a marketing technology company. The Company provides shopper marketing and digital marketing technology and solutions to retail companies, individual retail brands, enterprises and organizations throughout the United States and in certain international markets. The Company operates through marketing technology solutions segment. The Company specializes in a range of existing and emerging shopper and digital marketing technologies, as well as the related media management and distribution software platforms and networks, device management, product management, customized software service layers, systems, experiences, workflows and integrated solutions. Its technology and solutions include digital merchandising systems and omni-channel customer engagement systems, interactive digital shopping assistants, advisors and kiosks, and other interactive marketing technologies, such as mobile, social media, point-of-sale transactions, beaconing and Web-based media.
