HARVARD BIOSCIENCE, INC. (NASDAQ:HBIO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On April 18, 2020, Harvard Bioscience, Inc. (the “Company”) entered into a promissory note (the “Note”) with PNC Bank, National Association (the “Lender”), which provides for a loan in the amount of $6,114,700.00 (the “PPP Loan”) to the Paycheck Protection Program (the “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”).
The PPP Loan matures on April 18, 2022 and bears interest at a rate of 1.00% per annum. On November 15, 2020, the Company is required to pay the Lender all accrued interest, and thereafter the Company is required to pay the Lender equal monthly payments of principal and interest through April 18, 2022. The PPP Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Note contains various certifications and agreements related to the PPP, as well as customary default and other provisions.
The PPP Loan is unsecured by the Company and is guaranteed by the SBA. All or a portion of the PPP Loan may be forgiven by the SBA upon application by the Company accompanied by documentation of expenditures in accordance with SBA requirements under the PPP, which includes employees being kept on the payroll for eight weeks after the date of the PPP Loan and the proceeds of such PPP Loan being used for payroll, rent, mortgage interest or utilities. Forgiveness is also based on maintaining or rehiring employees and maintaining salary levels. In the event all or any portion of the PPP Loan is forgiven, the amount forgiven is applied to outstanding principal.
The foregoing description of the Note is qualified in its entirety by reference to the Note, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure under Item 1.01 above is incorporated by reference in this Item 2.03.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| 10.1 | Paycheck Protection Program Term Note, dated as of April 18, 2020, by and between Harvard Bioscience, Inc. and PNC Bank, National Association. |
HARVARD BIOSCIENCE INC Exhibit
EX-10.1 2 exh_101.htm EXHIBIT 10.1 Exhibit 10.1 Paycheck Protection Program Term Note $6,…
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About HARVARD BIOSCIENCE, INC. (NASDAQ:HBIO)
Harvard Bioscience, Inc. is a developer, manufacturer and marketer of a range of scientific instruments, systems and lab consumables used for basic research, drug discovery, clinical and environmental testing. The Company’s products are sold to thousands of researchers in over 100 countries through its global sales organization, Websites, catalogs and through distributors. The Company’s product range is organized into three commercial product families: Cell and Animal Physiology (CAP), Lab Products and Services (LPS), and Molecular Separation and Analysis (MSA). The Company sells these products under brand names, including Harvard Apparatus, KD Scientific, Denville Scientific, AHN, Hoefer, Biochrom, BTX, Warner Instruments, MCS, HEKA, Hugo Sachs Elektronik, Panlab, Coulbourn Instruments, TBSI and CMA Microdialysis. The Company’s products consist of instruments, consumables and systems that are made up of various individual products.