POLARITYTE, INC. (NASDAQ:COOL) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On April 12, 2020, PolarityTE MD, Inc., a subsidiary of PolarityTE, Inc. (collectively the “Company”) entered into a promissory note evidencing an unsecured loan in the amount of $3,576,145 made to the Company under the Paycheck Protection Program (the “Loan”). The Paycheck Protection Program (or “PPP”) was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through KeyBank, N.A., a national banking association (the “Lender”).
The interest rate on the Loan is 1.00%. Beginning seven months from the date of the Loan the Company is required to make 24 monthly payments of principal and interest in the amount of $150,563. The promissory note evidencing the Loan contains customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or Lender, or breaching the terms of the Loan documents. The occurrence of an event of default may result in the repayment of all amounts outstanding, collection of all amounts owing from the Company, or filing suit and obtaining judgment against the Company.
Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of loan granted under the PPP. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any payments of mortgage interest, rent, and utilities. No assurance is provided that the Company will obtain forgiveness of the Loan in whole or in part.
The foregoing descriptions of the Promissory Note do not purport to be complete and are qualified in their entirety by reference to the full text of the Note and Loan Agreement attached to this Form 8-K as Exhibit 10.1 and incorporated herein by reference.
The disclosure in Item 1.01 and Exhibit 10.1 of this report are incorporated herein by reference.
| 10.1 | Note and Loan Agreement dated April 12, 2020, between PolarityTE MD, Inc., and KeyBank National Association |
POLARITYTE, INC. Exhibit
EX-10.1 2 ex10-1.htm Exhibit 10.1 U.S. Small Business Administration NOTE SBA Loan # 24725771-07 SBA Loan Name PolarityTE MD,…
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About POLARITYTE, INC. (NASDAQ:COOL)
PolarityTE, Inc., formerly Majesco Entertainment Company, is a technology company. The Company has developed, marketed, published and distributed software through online platforms. The Company develops applications for gaming on computers, handheld devices and game consoles. The Company is the owner of patent applications and know-how related to regenerative medicine and tissue engineering, as well as software applications used in diagnosis and treatment related to regenerative medicine. It seeks to develop and obtain regulatory approval for technology that will utilize a patient’s own tissue substrates for the regeneration of skin, bone, muscle, cartilage, fat, blood vessels and nerves. Its PolarityTE platform simplifies regeneration and allows cells to function naturally. The platform can be applied across all cells, tissues and composite structures. Its platform induces cell and tissue polarity, and creates functional tissue that mirrors natural development in the human body.