NANOPHASE TECHNOLOGIES CORPORATION (OTCMKTS:NANX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On September 16, 2020, Nanophase Technologies Corporation (the “Company”) entered in to the Second Amendment, with an effective date of September 8, 2020 (the “Amendment”), to the Business Loan Agreement, dated November 18, 2018 (the “Business Loan Agreement”), between the Company and Beachcorp, LLC. Beachcorp, LLC is an affiliate of Mr. Bradford T. Whitmore, who beneficially owns a majority of the Company’s common stock and is the brother of Ms. R. Janet Whitmore, a director of the Company and the chair of the Company’s board of directors. Mr. Whitmore is also a direct lender to the Company under the 2% Secured Convertible Promissory Note, dated November 20, 2019, made by the Company in favor of Mr. Whitmore in the principal amount of $2,000,000, which principal amount is due on May 15, 2024 (unless earlier converted into shares of the Company’s common stock) and which accrues interest at the rate of 2.0% per year.
The Amendment increases the maximum borrowing amount under the Company’s asset-based revolving loan facility under the Business Loan Agreement (the “Revolver Facility”) from $2,000,000 to $2,750,000, with a borrowing base consisting of qualified accounts receivable of the Company and with all principal and accrued interest due March 31, 2021. The outstanding borrowings under the Revolver Facility accrue interest at the prime rate plus 3% (8.25% minimum) per year. The Revolver Facility is secured by all the unencumbered assets of the Company and subordinated to the Company’s revolving line of credit with Libertyville Bank & Trust.
This Item 1.01 is qualified in its entirety by reference to the complete text of the Amendment, which is filed as an exhibit to this current report on Form 8-K.
Item 1.01 of this current report on Form 8-K is incorporated into this Item 2.03.
(d) Exhibits.
| 10.1 | Second Amendment, dated September 16, 2020, to Business Loan Agreement between Nanophase Technologies Corporation and Beachcorp, LLC |
NANOPHASE TECHNOLOGIES Corp Exhibit
EX-10.1 2 ex10-1.htm SECOND AMENDMENT,…
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About NANOPHASE TECHNOLOGIES CORPORATION (OTCMKTS:NANX)
Nanophase Technologies Corporation is a materials and applications developer and commercial manufacturer with an integrated family of materials technologies. The Company produces engineered nano and sub-micron materials for use in a range of markets, including personal care, including sunscreens, architectural coatings, industrial coating applications, abrasion-resistant additives, plastics additives, medical diagnostics, energy, and a range of surface finishing technologies (polishing) applications, including optics. The technologies are designed to offer nanomaterial solutions for a targeted market or a specific customer application. The Company’s nanomaterials platform includes over two distinct manufacturing processes (Plasma Vapor Synthesis (PVS) and NanoArc Synthesis (NAS)) to make nanomaterials or nanoparticles. The Company’s products include Aluminum Oxide, Antimony Tin Oxide, Bismuth Oxide, Cerium Oxide, Iron Oxide and Zinc Oxide.