INTELLINETICS, INC. (OTCMKTS:INLX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On November 15, 2019, Intellinetics, Inc., a Nevada corporation (the “Company”), issued promissory notes in the aggregate amount of $397,728 (the “Notes”), to two accredited investors, Robert F. Taglich and Michael N. Taglich (the “Note Investors”). The Note Investors each received a Note with a principal amount of $198,864, and they are each related to the Company as beneficial owners of more than 5% of the Company’s common stock. The Notes mature on May 15, 2020 (the “Maturity Date”) and include an original issue discount of 12%. The Note Investors have a right, in their sole discretion, to convert the Notes into any types of securities sold by the Company in its next equity or debt financing on the same terms as other investors in such financing. If the Notes have not been fully repaid by the Company by the Maturity Date or converted into other securities prior to the Maturity Date, then such Notes will accrue interest at the annual rate of 12% from the Maturity Date until the date the Notes are repaid in full. The Company intends to use the proceeds of the Notes for working capital, general corporate purposes, and debt repayment. A form of the Notes is incorporated as Exhibit 10.1 to this Report, and the summary description of the terms of the Notes contained herein is qualified in its entirety by reference to Exhibit 10.1.
The information provided in Section 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.03.