FitLife Brands, Inc. (OTCMKTS:FTLF) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 8.01 of this Current Report on Form 8-K is incorporated by reference herein.
As previously disclosed in the Company\’s Current Report on Form 8-K filed September 26, 2019, Fitlife Brands, Inc. (the \”Company\”) is party to a $2.5 million Revolving Line of Credit Note (the \”Line of Credit\”) with Mutual of Omaha Bank (the \”Lender\”). On March 20, 2020, the Company drew on the Line of Credit in an amount equal to $2.5 million (the full amount of the Line of Credit) (the \”Advance\”). The current interest rate for borrowings under the Line of Credit is the one-month LIBOR rate plus 2.75%. Unless otherwise extended, the outstanding principal balance under the Line of Credit will be due and payable in full on the maturity date, which is September 23, 2020. The Company elected to borrow such amounts to ensure it maintains ample financial flexibility in light of the spread of the novel coronavirus (\”COVID-19\”). The Advance was intended to provide the Company with additional liquidity in anticipation of an expected negative impact on sales to the Company\’s wholesale customers resulting from the COVID-19 outbreak. The Company had sufficient liquidity prior to taking this action, it has no maturities due other than the maturity of the Line of Credit, and there are currently no plans to deploy the drawn-down funds.
FitLife Brands, Inc. is a provider of nutritional supplements for health conscious consumers marketed under the brand names, such as NDS Nutrition Products (NDS) (www.ndsnutrition.com), PMD (www.pmdsports.com), SirenLabs (www.sirenlabs.com), CoreActive (www.coreactivenutrition.com) and Metis Nutrition (www.metisnutrition.com) (together, NDS Products). The Company’s product portfolio also includes brands, including iSatori (www.isatori.com), CT Fletcher, BioGenetic Laboratories, and Energize (together, iSatori Products). The NDS Products are distributed principally through franchised General Nutrition Centers, Inc. (GNC) stores located both domestically and internationally, and, with the addition of Metis Nutrition, through corporate GNC stores in the United States. The iSatori Products are sold through approximately 25,000 retail locations, which include specialty, mass and online. Its iSatori Products are sold through iSatori, Inc., which is a subsidiary of the Company.
