NORTECH SYSTEMS INCORPORATED (NASDAQ:NSYS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
On April 15, 2020, Nortech Systems Incorporated (the “Company”) entered into a Promissory Note with Bank of America, N.A. (the “Promissory Note”), which provides for an unsecured loan of $6.1 million to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act and applicable regulations (the “CARES Act”). The Promissory Note has a term of 2 years with a 1% per annum interest rate. Payments are deferred for 6 months from the date of the Promissory Note and the Company can apply for forgiveness of the Promissory Note after 60 days. Forgiveness of the Promissory Note will be determined in accordance with the provisions of the Cares Act and applicable regulations. Any principal and interest amounts outstanding after the determination of amounts forgiven will be repaid on a monthly basis.
As of the date of this filing, the Company has not yet received funds from the lender contemplated by the Promissory Note. It is the Company\’s understanding that the Lender has ten business days from the date of the Promissory Note to send the funds to the Company.
The foregoing summary description of the terms and conditions of the Promissory Note does not purport to be complete and is qualified in its entirety by reference to the Promissory Note, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and is 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
The information with respect to the Promissory Note in Item 1.01 of this Current Report on Form 8-K is incorporated by reference.
Item 9.01 Financial Statements and Exhibits
NORTECH SYSTEMS INC Exhibit
EX-10.1 2 ex_181687.htm EXHIBIT 10.1 ex_181687.htm Exhibit 10.1 Promissory Note Date 04/14/2020 Loan Amount $6,…
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About NORTECH SYSTEMS INCORPORATED (NASDAQ:NSYS)
Nortech Systems Incorporated is an electronic manufacturing services (EMS) company. The Company offers a range of value-added engineering, technical and manufacturing services and support, including project management, design, testing, prototyping, manufacturing, supply chain management and post-market services. The Company’s segment is Contract Manufacturing. The Company’s manufacturing and engineering services include medical devices, printed circuit board assemblies, wire and cable assemblies, and electromechanical assemblies. The Company’s manufacturing facilities are located at Bemidji, Blue Earth, Merrifield, Eden Prairie, Milaca and Mankato in Minnesota; Augusta in Wisconsin; Monterrey in Mexico, and Suzhou in China. The Company serves approximately three markets within the EMS industry, such as Aerospace and Defense, Medical/Life Sciences and the Industrial market, which includes industrial equipment, transportation, vision, agriculture, oil and gas.
