Majesco (OTCMKTS:MJXFF) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On January 13, 2017, Majesco, a California corporation (Majesco),
and its subsidiaries Majesco Software Solutions Inc., a New York
corporation (MSSI), and Cover-All Systems Inc., a Delaware
corporation (Cover-All, and together with Majesco and MSSI, the
Company), jointly and severally entered into a Receivable
Purchase Agreement (the Agreement) with HSBC Bank USA, National
Association (HSBC). Under the Agreement, HSBC may advance funds
against certain eligible accounts receivable (the Receivables) at
an agreed advance rate. The outstanding aggregate amount of all
advances shall not exceed $10.0 million at any time (the Facility
Limit). The facility also bears interest at two (2%) per cent
plus the ninety (90) day LIBOR rate. HSBC will also receive an
arrangement fee equal to .20% of the Facility Limit and a
facility review fee equal to .20% of the Facility Limit. The
Company will serve as HSBCs agent for the collection of
Receivables, and the Company will collect and otherwise enforce
payment of the Receivables. The term of the agreement is for a
minimum period of twelve (12) months and shall continue unless
terminated by either party. Either party may terminate the
agreement at any time upon sixty (60) days prior written notice
to the other party. The Agreement will provide additional
liquidity to the Company for working capital and other general
corporate purposes.
The foregoing summary of the Agreement does not purport to be
complete and is qualified in its entirety by reference to the
Agreement, attached hereto as Exhibit 10.1 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.
Reference is made to the disclosure under Item 1.01 above which
is hereby incorporated in this Item 2.03 by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
10.1Receivable Purchase Agreement, dated January 13, 2017, by and
between Majesco and HSBC Bank USA, National Association
Majesco (OTCMKTS:MJXFF) Recent Trading Information
Majesco (OTCMKTS:MJXFF) closed its last trading session 00.0000 at 0.0547 with 1,100 shares trading hands.
