HEALTHWAREHOUSE.COM, INC. (OTCMKTS:HEWA) Files An 8-K Entry into a Material Definitive Agreement

HEALTHWAREHOUSE.COM, INC. (OTCMKTS:HEWA) Files An 8-K Entry into a Material Definitive Agreement

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Item 1.01 Entry Into A Material Definitive Agreement.

Healthwarehouse.com, Inc. (the “Company”) is a party to a Loan
and Security Agreement, dated as of March 28, 2013 (the “Loan
Agreement”) with Melrose Capital Advisors, LLC (the “Lender”).
Under the terms of the Loan Agreement, the Company borrowed an
aggregate of $1,200,000 from the Lender (the “Loan”). The Loan
is evidenced by a promissory note in the face amount of
$1,200,000, as amended (the “Senior Note”). The Senior Note
bears interest on the unpaid principal balance until the full
amount of principal has been paid at a floating rate equal to the
prime rate plus four and one-quarter percent (4.25%) per annum.
Under the terms of the Loan Agreement, the Company has agreed to
make monthly payments of accrued interest on the first day of
every month. The principal amount and all unpaid accrued interest
on the Senior Note was payable on February 28, 2017. The Loan may
be prepaid in whole or in part at any time by the Company without
penalty.
The Company granted the Lender a first priority security interest
in all of the Company’s assets, in order to secure the
Company’s obligation to repay the Loan, including a Deposit
Account Control Agreement, dated as of July 8, 2016, which grants
the Lender a security interest in certain bank accounts of the
Company. The Loan Agreement contains customary negative covenants
restricting the Company’s ability to take certain actions
without the Lender’s consent, including incurring additional
indebtedness, transferring or encumbering assets, paying
dividends or making certain other payments, and acquiring other
businesses. Upon the occurrence of an event of default, the
Lender has the right to impose interest at a rate equal to eight
percent (8.0%) per annum above the otherwise applicable interest
rate (the “Default Rate”). The repayment of the Loan may be
accelerated prior to the maturity date upon certain specified
events of default, including failure to pay, bankruptcy, breach
of covenant, and breach of representations and warranties.
On February 28, 2017, the Company and the Lender entered into a
Fifth Amendment to Amended and Restated Promissory Note,
effective February 28, 2017, to which the Lender agreed to extend
the maturity date of the Senior Note from February 28, 2017 to
March 31, 2017.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibit is included herewith.
Exhibit Number
Description
10.1
Fifth Amendment to Amended and Restated Promissory Note
dated February 28, 2017 by and between HealthWarehouse.com,
Inc., HWAREH.COM, Inc. and Hocks.com, Inc. and Melrose
Capital Advisors, LLC


About HEALTHWAREHOUSE.COM, INC. (OTCMKTS:HEWA)

HealthWarehouse.com, Inc. is an online pharmacy that is focused on the out-of-pocket prescription drug market. The Company is licensed as a mail-order pharmacy. HealthWarehouse.com is a Verified Internet Pharmacy Practice Websites (VIPPS) and is the VIPPS accredited pharmacy that processes out-of-pocket prescriptions online. The Company markets a range of generic, brand name and pet prescription medications, as well as over-the-counter (OTC) medications and products. The Company sells directly to individual consumers who purchase prescription medications and OTC products over the Internet. The Company ships its products to approximately 50 states, the District of Columbia, the United States Territories, and army post office/fleet post office (APO/FPO) military and embassy addresses. The Company processes all orders from its distribution center in Florence, Kentucky.

HEALTHWAREHOUSE.COM, INC. (OTCMKTS:HEWA) Recent Trading Information

HEALTHWAREHOUSE.COM, INC. (OTCMKTS:HEWA) closed its last trading session 00.000 at 0.260 with 1,000 shares trading hands.

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