Sajan, Inc. (NASDAQ:SAJA) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. |
On April 12, 2017, Sajan, Inc. (the Company) entered into an
amendment (the Amendment) to its revolving line of credit
facility with Silicon Valley Bank (the Credit Facility). The
Amendment extends the maturity date of the Credit Facility to
March 27, 2018. Additionally, the Amendment adjusted the interest
rate provisions to provide that the unpaid principal amount
borrowed under the Credit Facility accrues interest at a floating
rate per annum equal to (a) one half of one percent (0.5%) above
the prime rate published from time to time in the money rates
section of the Wall Street Journal (the Prime Rate) when the
liquidity ratio is greater than or equal to 1.75 to 1.0 and (b)
one and three quarters of one percent (1.75%) above the Prime
Rate when the liquidity ratio is less than 1.75 to 1.0. The
interest rate floor remains set at four percent (4.0%) per annum.
Additionally, the Amendment deletes the fee previously required
to be paid based on the unused portion of the Credit Facility.
The Amendment is set forth in that certain Third Amendment to
Amended and Restated Loan and Security Agreement between the
Company and Silicon Valley Bank, entered into as of April 12,
2017 and effective as of March 27, 2017. The Amendment now
requires the Company to maintain a consolidated minimum tangible
net worth of at least $4,000,000 increasing as of the last day of
each fiscal quarter by an amount equal to 25% of the sum of (i)
the Companys net income for such quarter, (ii) any increase in
the principal amount of the Companys outstanding subordinated
debt during such quarter, and (iii) the net amount of proceeds
received by the Company in such quarter from the sale or issuance
of equity securities. Losses in any quarter do not reduce the
required tangible net worth. The Amendment also provides that
following a permitted acquisition by the Company, the Company
will no longer have to comply with the tangible net worth
covenant; rather, the Company will be required to maintain, on a
consolidated basis, EBITDA of at least $250,000 for the trailing
six (6) month period ending on the last day of each month.
The foregoing description of the Amendment is qualified in its
entirety by reference to the Amendment attached hereto as Exhibit
10.1, which 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 set forth in Item 1.01 above is incorporated
herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. | Description | |
| 10.1 |
Third Amendment to Amended and Restated Loan and Security Agreement between the Company and Silicon Valley Bank, entered into as of April 12, 2017 and effective as of March 27, 2017. |
About Sajan, Inc. (NASDAQ:SAJA)
Sajan, Inc. (Sajan) is a provider of language translation solutions. The Company provides language translation services and technology solutions to companies located throughout the world, particularly in the technology, consumer products, medical and life sciences, financial services, manufacturing and retail industries. The Company’s customers use its solutions to translate sales and marketing materials, packaging, user manuals, technical support and training documents, product manuals, instructions, warnings and other product information into various languages. The Transplicity platform not only incorporates modernized technological capabilities, but also provides a personalizable user interface. SiteSync is a technology component that automates global Website translation and ongoing management. Its services also include machine translation solutions, multilingual search engine optimization, linguistic quality assessment, internationalization assessments and interpretation. Sajan, Inc. (NASDAQ:SAJA) Recent Trading Information
Sajan, Inc. (NASDAQ:SAJA) closed its last trading session 00.00 at 3.64 with 1,046 shares trading hands.