PRO-DEX, INC. (NASDAQ:PDEX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
Entry into a Material Definitive Agreement.
Business Loan Agreement
On April 19, 2017 Pro-Dex, Inc. (the Company) entered into a
Business Loan Agreement, (the Loan Agreement), dated effective
March 28, 2017, with Farmers Merchants Bank of Long Beach, a
California corporation, providing for a $500,000 revolving loan
facility (the Revolving Loan Facility). The Revolving Loan
Facility is secured by substantially all of the assets of the
Company.
The Revolving Loan Facility terminates on March 28, 2018 and
bears interest at an adjustable rate per annum of 2.0% above the
prime rate as published in the Money Rates section of the Wall
Street Journal (the Prime Rate), payable monthly in arrears
commencing on April 28, 2017, and the same day of each month
thereafter. Upon an event of default, the amount due under the
Revolving Loan Facility accelerates, becomes immediately due and
payable, and bears interest at an adjustable rate per annum of
7.0% above the Prime Rate. A minimum interest charge of $500 will
be assessed in the event that the interest fee is less than $500.
The Loan Agreement contains representations and warranties,
affirmative, restrictive and financial covenants, and events of
default that are customary for loan facilities of this type.
A copy of the Loan Agreement is attached as an exhibit to this
report, and the above description is qualified by reference to
the complete text of that agreement.
ITEM 2.03
Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
The disclosures contained in Item 1.01 above concerning the
Revolving Loan Facility is incorporated into this Item 2.03 by
this reference.
ITEM 9.01
Financial Statements and Exhibits.
(d) Exhibits
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Exhibit Number |
Description |
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10.1 |
Business Loan Agreement, dated March 28, 2017, between |
About PRO-DEX, INC. (NASDAQ:PDEX)
Pro-Dex, Inc. (Pro-Dex) designs and produces surgical and dental instruments and motion control products used in the medical, factory automation and scientific research industries. The Company operates through four segments: Pro-Dex, OMS, Fineline and Engineering Services Division (ESD). The Pro-Dex segment provides primarily medical and dental instruments using shared production and assembly machines and workforce. The OMS segment is engaged in providing multi-axis motion control applications. The Fineline segment manufactures plastic injection molds for various industries. The ESD segment provides permanent placement and contract services in the fields of engineering, manufacturing and quality to diverse businesses. In addition to Pro-Dex, the names Micro Motors and Oregon Micro Systems are used for marketing purposes as brand names. It provides engineering consulting services, as well as quality and regulatory consulting services, to a range of industries through EDS. PRO-DEX, INC. (NASDAQ:PDEX) Recent Trading Information
PRO-DEX, INC. (NASDAQ:PDEX) closed its last trading session down -0.09 at 4.51 with 3,566 shares trading hands.