MEDICAL TRANSCRIPTION BILLING, CORP. (NASDAQ:MTBCP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
On October 13, 2017, Medical Transcription Billing, Corp. and its wholly owned subsidiary MTBC Acquisition, Corp. (the “Company”) entered into a Loan and Security Agreement (the “Agreement”) with Silicon Valley Bank (“SVB”) whereby the Company secured a $5,000,000 revolving line of credit from SVB (“Facility”).
The interest on the outstanding portion of the Facility will equal the prime rate plus one and three-quarters of one percent (1.75%). The Facility has an annual fee equal to 1% payable at closing and upon each anniversary, and a fee of 0.5% for the unused availability of the line. The Company also issued SVB a warrant exercisable for 125,000 shares of the Company’s common stock.
A portion of the proceeds of the loan will be used to repay the Company’s outstanding revolving line of credit of approximately $500,000 to Opus Bank, at which point the Company will close its credit facility with Opus Bank. The remaining proceeds will be used for the Company’s growth and general working capital purposes.
The Company’s obligations to SVB are secured by substantially all of the Company’s assets.
The foregoing description of the Agreement and related loan documents does not purport to be complete and is qualified entirely by reference to the complete text of such documents, copies of which are attached as exhibits to this Form 8-K and are incorporated herein by reference.
The above description and the loan documents have been included to provide investors and security holders with information regarding the terms thereof. Investors and security holders are not third-party beneficiaries under the credit agreement and should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the thereto or any of their respective subsidiaries or affiliates. Moreover, information concerning the subject matter of representations and warranties may change after the date of the loan agreement, which subsequent information may or may not be fully reflected in the Company’s disclosures.
| Item 9.01 | Financial Statements and Exhibits |
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MEDICAL TRANSCRIPTION BILLING, CORP ExhibitEX-10.1 2 ex10-1.htm LOAN AND SECURITY AGREEMENT THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of October 13,…To view the full exhibit click here