TRANS-LUX CORPORATION (OTCMKTS:TNLX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
The information provided in Item 2.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 1.01.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On April 23, 2020, Trans-Lux Corporation (the “Company” and “Borrower”) entered into that certain loan note (the “Loan Note”) with Enterprise Bank and Trust (“Enterprise”) as lender under the Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) of the Small Business Administration of the United States of America (“SBA”), dated as of April 20, 2020.
Under the Loan Note, the Borrower borrowed $810,800 from Lender under the Payment Protection Program included in the SBA’s CARES ACT. The Loan Note proceeds are available to be used to pay for payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leave; rent; utilities; and interest on certain other outstanding debt. The Loan Note has a term of two years.
Interest under the Loan Note accrues at a rate per annum of 1.00%, with the first payment of principal and interest due on November 20, 2020.
According to the terms of the PPP and current guidance from the SBA and U.S. Department of Treasury, all or a portion of loans under the program may be forgiven if the Loan Note proceeds are used for permitted expenses, as outlined in the CARES Act and related regulations, including 75% of the Loan Note proceeds being used for payroll related costs. The amount that will be forgiven will be calculated in part with reference to the Company’s full time headcount during the eight-week period following the funding of the Loan Note. The SBA and U.S. Department of Treasury may continue to update guidance on the calculation of loan forgiveness, which updated guidance could affect the amount of the Loan Note proceeds that could be forgiven.
The foregoing description of the Loan Note is included to provide information regarding its terms. It does not purport to be a complete description and is qualified in its entirety by reference to the full text of the Loan Note, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
TRANS LUX Corp Exhibit
EX-10.1 2 exhibit10_1.htm EXHIBIT 10.1 Exhibit 10.1 Exhibit 10.1 U.S. Small Business Administration NOTE SBA Loan # 1259977203 SBA Loan Name TRANSLUX CORPORATION Date 4/20/2020 Loan Amount 810,…
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About TRANS-LUX CORPORATION (OTCMKTS:TNLX)
Trans-Lux Corporation is a designer and manufacturer of digital signage display solutions. The Company designs, manufactures, distributes and services the elements of these systems that are real-time, programmable digital displays. These display systems utilize light emitting diode (LED) technologies. In addition, its LED lighting division provides lighting solutions that feature an offering of LED lighting technologies that provide facilities and public infrastructure with green lighting solutions. It operates through two segments: the Digital display sales division, and the Digital display lease and maintenance division. In North America, it markets digital display products in the United States and Canada using a combination of distribution channels, including direct sales representatives and a network of independent dealers and distributors. By working with software vendors and using the Internet, it offers information, content management software and display hardware.
