SUMMER ENERGY HOLDINGS, INC. (OTCMKTS:SUME) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01Entry into a Material Definitive Agreement
Item 2.03Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On December 18, 2018, Summer Energy Holdings, Inc. (the “Company”) signed a Single Payment Note (the “Note”) with Comerica Bank (the “Bank”) in the amount of $2,900,000. The Note has a maturity date of June 11, 2020, with interest thereon at a per annum rate equal to the “Prime Referenced Rate” plus the “Applicable Margin.” The “Prime Referenced Rate” means, for any day, a per annum interest rate which is equal to the “Prime Rate” in effect on such day, but in no event and at no time shall the “Prime Reference Rate” be less than the sum of the Daily Adjusting LIBOR Rate for such day plus two and one-half percent (2.5%) per annum. “Prime Rate” means the per annum rate established by Comerica Bank as its prime rate for its borrowers at any such time. “Applicable Margin” means 0.25% per annum. Accrued and unpaid interest on the unpaid principal balance outstanding on the Note shall be payable monthly on the first day of each month, commencing on February 1, 2019.
to the Note, the Bank may, by written notice to the Company, declare the principal of and the accrued interest on all outstanding loans to be forthwith due and payable upon the occurrence of certain events of default. The Note defines Default to include, inter alia, (i) a default in payment when due of all or any part of any obligation payable by the Company under the Note, (ii) a default in the observance or performance of certain of the provisions set forth in the Note, (iii) any representation or warranty made in connection with the Note proves untrue or incomplete, (iv) the filing or issuance of any levy or writ of attachment or garnishment or other like judicial process upon the Company or any guarantor, and (v) any other specified event of default.
Guaranty of the Note has been made by four members of the Company’s board of directors (“Guarantors”). The Company agreed to issue the four Guarantors shares of the Company’s common stock on a monthly basis depending on the outstanding balance due and owing under the Note for agreeing to act as a Guarantor of the Note.
About SUMMER ENERGY HOLDINGS, INC. (OTCMKTS:SUME)
Summer Energy Holdings, Inc. operates through its subsidiaries, Summer Energy, LLC (Summer LLC), Summer Energy of Ohio (Summer Ohio) and Summer EM Marketing, LLC (Marketing LLC). The Company’s primary business operations are conducted through Summer LLC, which is a licensed Retail Electricity Provider (REP) in the State of Texas. The Company conducts the business of purchasing and reselling electric power within the State of Texas through Summer LLC. The Company sells electricity and provides the related billing, customer service, collections and remittance services to residential and commercial customers. It offers retail electricity to commercial and residential customers in designated target markets within the State of Texas. Marketing, LLC provides marketing services to Summer LLC. Summer Ohio procures and sells electricity in the state of Ohio.