On Track Innovations Ltd. (NASDAQ:OTIV) Files An 8-K Entry into a Material Definitive Agreement

On Track Innovations Ltd. (NASDAQ:OTIV) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01.

As previously reported by On Track Innovations Ltd. (the “Company”), in May 2019, ASEC S.A. (Spolka Akcyjna) (the “Subsidiary”), a wholly-owned Polish subsidiary of the Company, entered into a loan agreement (the “Agreement”) with PKO Bank Polski, a Polish bank (the “Lender”). In May 2019, to the Agreement, the Lender provided to the Subsidiary a secured loan in the amount of $2,000,000. On May 11, 2020, as was also reported by the Company, based on Polish government regulations introduced in relation to the COVID-19 pandemic, the Subsidiary received the consent of the Lender to postpone the maturity date of the loan, by six months, to November 22, 2020 instead of May 23, 2020, as the Agreement provided. On November 16, 2020, as previously reported by the Company, the Subsidiary received the consent of the Lender to further postpone the maturity date of the loan to December 22, 2020. On December 21, 2020, the Subsidiary and the Lender entered into an addendum to the Agreement (the addendum, together with its Statement exhibit, the “Addendum”). to the Addendum, the principal balance of the loan, after payment of $300,000 by the Subsidiary is $1,700,000 (the “Loan”). In addition, to the Addendum, the Lender agreed to further postpone the maturity date of the Loan to December 22, 2021. The Loan will be payable in full on maturity (with the option of early repayment by the Subsidiary) and the interest of 1-month LIBOR plus 1.8% is paid on a monthly basis. The Loan is secured by certain assets of the Subsidiary and by a bank guarantee. The Agreement includes customary events of default, including, among others, failures to repay any amounts due to the Lender, breaches or defaults under the terms of the Agreement, etc. If an event of default occurs, the Lender may reduce the amount of the Loan, demand an additional security, terminate the Agreement, or, in the event of a failure to repay the obligations under the Agreement by the due dates specified therein, the Lender may collect the due payments by enforcing a notarial deed of statement submitted by the Subsidiary.

Item 9.01 Financial Statements and Exhibits.

(d)  Exhibits

10.1 Addendum to Loan Agreement, dated December 21, 2020, by and between ASEC S.A. (Spolka Akcyjna) and PKO Bank Polski, a Polish bank. (translated from Polish).
10.2. Statement by PKO BP SA, dated December 21, 2020.

EX-10.1 2 ea132297ex10-1_ontrack.htm ADDENDUM TO LOAN AGREEMENT,…
To view the full exhibit click here

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About On Track Innovations Ltd. (NASDAQ:OTIV)

On Track Innovations Ltd. is a developer of cashless payment solutions. The Company’s segments include Retail and Mass Transit, Petroleum, Parking and Other. The Company offers solutions for banking, mobile network operators, vending, mass transit, petroleum and parking. The Company provides its customers with training and installation support, customer service and technical support. Its PayEnable technology can be implemented into a range of products. Its Retail and Mass Transit products include TRIO mPOS, Pico BT, WAVE, WAVE PKI, oti SATURN 6700 UNO, oti SATURN 6500 TRIO and oti SCI 6000. It also offers otiMetry and oti CONNECT 3000. Its EasyFuel Plus solution is a wireless, cashless, cardless and paperless refueling tracking and payment solution. Its EasyPark set of parking solutions provides parking fee collection, parking payment enforcement and parking management solution. Its MediSmart solution is an information management and claims submission system for the medical sector.

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