Streamline Health Solutions,Inc. (NASDAQ:STRM) Files An 8-K Entry into a Material Definitive Agreement

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Streamline Health Solutions,Inc. (NASDAQ:STRM) Files An 8-K Entry into a Material Definitive Agreement

Streamline Health Solutions,Inc. (NASDAQ:STRM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

On November20, 2018, Streamline Health Solutions,Inc. (the “Company”), Streamline Health,Inc., as borrower, and Wells Fargo Bank, N.A., as administrative agent, and the other lender parties thereto entered into a Fourth Amendment (the “Fourth Amendment”) to the Company’s Credit Agreement dated November21, 2014, as previously amended on April15, 2015, April29, 2016, and June19, 2017 (the “Credit Agreement”).

The Fourth Amendment extends the maturity date of the term loan to May21, 2020, modifies the repayment schedule for the principal of the term loan, changes the minimum liquidity requirements applicable to the Company, and, effective as of October31, 2018, modifies the minimum EBITDA covenant thresholds. The newly negotiated lower minimum thresholds for EBITDA covenants are markedly lower than the Company’s previous minimum EBITDA covenant thresholds.

The Fourth Amendment changed the minimum liquidity required to be maintained by the Company to at least (i)$3,500,000 from November20, 2018 through and including January31, 2019, and (ii)$4,000,000 from February1, 2019 through and including the maturity date of the Credit Agreement.

The following table shows the minimum EBITDA covenant thresholds, as modified by the Fourth Amendment:

ApplicableAmount

ApplicablePeriod

$(509,000)

For the fiscal quarter ending October31, 2018

$20,000

For the 2-quarter period ending January31, 2019

$204,000

For the 3-quarter period ending April30, 2019

$180,000

For the 4-quarter period ending July31, 2019

$508,000

For the 4-quarter period ending October31, 2019

$408,000

For the 4-quarter period ending January31, 2020

$562,000

For the 4-quarter period ending April30, 2020 and for the 4-quarter period ending on each July31, October31, January31, and April30 thereafter

The foregoing is a summary of the terms of the Fourth Amendment. The summary does not purport to be complete and is qualified in its entirety by reference to the Fourth Amendment, a copy of which is filed as Exhibit10.1 to this Current Report on Form8-K and is incorporated herein by reference.

Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Ruleor Standard; Transfer of Listing.

The NASDAQ Stock Market advised the Company on November26, 2018 that the closing bid price of the Company’s common stock, par value $0.01 per share of the Company (the

“Common Stock”) has been below the minimum bid price of $1.00 per share for the previous 30 consecutive business days, which is required for continued listing on The NASDAQ Capital Market to NASDAQ Listing Rule5550(a)(2)(the “Listing Rule”).

to NASDAQ Listing Rule5810(c)(3)(A), NASDAQ has provided the Company with 180 calendar days, or until May28, 2019, to regain compliance with the Listing Rule. During this period, the Company’s Common Stock will continue to trade uninterrupted on The NASDAQ Capital Market under the symbol “STRM.” To regain compliance, the closing bid price of the Common Stock must be at least $1.00 for a minimum of 10 consecutive business days at any time before May28, 2019. If the Company regains compliance with the Listing Rule, NASDAQ will provide written confirmation to the Company and close the matter. If the Company is not able to regain compliance with the Listing Ruleby May28, 2019 and is ineligible for additional time, the Company will receive notice of delisting from NASDAQ, which notice may be appealed at that time.

The Company intends to continue actively monitoring the closing bid price for its common stock between now and May28, 2019 and will consider available options to resolve the deficiency and regain compliance with the minimum closing bid price requirement. The Company has options that are available to help cure the deficiency, including, but not limited to, effecting a reverse stock split.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


STREAMLINE HEALTH SOLUTIONS INC. Exhibit
EX-10.1 2 a18-40697_1ex10d1.htm EX-10.1 Exhibit 10.1   FOURTH AMENDMENT TO CREDIT AGREEMENT   THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) is dated as of November 20,…
To view the full exhibit click here

About Streamline Health Solutions,Inc. (NASDAQ:STRM)

Streamline Health Solutions, Inc. is engaged in providing healthcare information technology through the licensing of its Electronic Health Information Management, Patient Financial, Coding and Clinical Documentation Improvement (CDI), and other Workflow software applications, and the use of such applications by software as a service. The Company also provides implementation and consulting services to complement its software solutions. The Company provides computer software-based solutions through its Looking Glass platform. The Company sells its solutions and services in North America to hospitals and health systems, including physician practices, through its direct sales force and its reseller partnerships. The Company’s software and services allow hospitals and integrated healthcare delivery systems in the United States and Canada to capture, store, manage, route, retrieve and process patient clinical, financial and other healthcare provider information.