Everspin Technologies, Inc. (NASDAQ:MRAM) Files An 8-K Entry into a Material Definitive Agreement
Item1.01.
| Entry into a Material Definitive Agreement. |
On May4, 2017, Everspin Technologies, Inc. (the Company) entered
into a Loan and Security Agreement with Silicon Valley Bank (the
Loan and Security Agreement) that provides the Company with a
$12million (the Loan Amount) credit facility. The term loan
provides for a period of interest-only payments through April30,
2018, followed by fixed principal and interest payments based on
either a 24-month amortization schedule or a 36-month amortization schedule
if the Company meets certain sales milestones, and an additional
payment of 6% of the Loan Amount when the loan is prepaid or
repaid, whether at maturity or as a result of a prepayment or
acceleration or otherwise. The interest rate will be a floating
per annum rate equal to the prime rate (as published in the money
rates section of The Wall Street Journal) minus 0.75%,
with a minimum interest rate of 0%.
The Loan and
Security Agreement provides that the credit facility is secured
by substantially all of the Companys assets, excluding
intellectual property.The Loan and Security Agreement also has
customary events of default, affirmative and negative covenants,
including but not limited to limitations on the ability of the
Company to incur additional indebtedness, grant liens on its
assets, make dividends or distributions, make investments or
dispose of its assets.In addition, the Loan and Security
Agreement contains certain financial covenants requiring the
Company to maintain at all times (i)a ratio of unrestricted cash
and cash equivalents plus net accounts receivable to all
outstanding obligations under the Loan and Security Agreement of
not less than 1.10 to 1.00 and (ii)certain minimum revenue
targets in connection with revenue received by the Company from
(a)the sale of Companys Sensor, Toggle, and Foundry products,
(b)any licensing and royalty payments received from Companys Non
Spin-Torque products, and (c)any non-recurring engineering
services revenue received by Company.
The foregoing
description of the Loan and Security Agreement is a summary, is
not complete, and is qualified in its entirety by the terms and
conditions of the actual Loan and Security Agreement, which is
attached hereto as Exhibit 10.1 and incorporated herein by
reference.
Item2.03.
Creation of a Direct Financial Obligation or an Obligation under
an Off-Balance Sheet Arrangement of a Registrant.
The information
set forth above in Item 1.01 hereby is incorporated into this
Item 2.03 by reference.
| Item9.01 | Financial Statements and Exhibits. |
(d)
Exhibits
|
Exhibit No. |
Description |
|
| 10.1 |
Loan and Security Agreement, dated as of May4, 2017, by and between the Company and Silicon Valley Bank. |
About Everspin Technologies, Inc. (NASDAQ:MRAM)
Everspin Technologies, Inc. is a United States-based provider of magnetoresistive random-access memory (MRAM) solutions. The Company is engaged in designing, manufacturing and shipping discrete and embedded MRAM and spin-torque MRAM (ST-MRAM) into markets and applications. The Company’s products include 8-bit/16-bit Parallel Interface MRAM, Serial Peripheral Interface (SPI), Quad SPI and Double Data Rate (DDR) 3 dynamic random-access memory (DRAM) Compatible MRAM – Spin Torque Technology. The Company’s MR10Q010 Quad SPI MRAM is a memory solution for applications that store and retrieve data and programs. Its DDR3 DRAM Compatible MRAM – Spin Torque Technology is designed to comply with all DDR3 DRAM features, such as on-device termination (ODT) and internal ZQ calibration. Its family of both parallel asynchronous input/output (I/O) and serial peripheral interface (SPI) products in densities ranging from 256 kilobyte (Kb) to 16 megabyte (Mb) is available in die form. Everspin Technologies, Inc. (NASDAQ:MRAM) Recent Trading Information
Everspin Technologies, Inc. (NASDAQ:MRAM) closed its last trading session up +0.06 at 9.50 with 22,879 shares trading hands.
