uSell.com, Inc. (OTCMKTS:USEL) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a RegistrantItem 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On May 4, 2018 (the “Effective Date”), uSell.com, Inc. (the “Company”), certain of the Company’s subsidiaries and an institutional investor (the “Lender”) entered into an amendment (the “Amendment”) to that certain note purchase agreement (the “NPA”) dated January 13, 2017. to the Amendment, the Lender granted the Company a one-time forbearance of existing remedies of default, under one of the financial covenants of the NPA, until June 30, 2018. In addition, the Company amended the terms of the NPA related to the Company’s debt coverage ratio and repaid $3,304,068 under the NPA, including $4,068 of accrued interest.
Further, on the Effective Date the Company entered into a second amended and restated secured term note (the “Second Note”), to which the NPA’s interest rate was increased from 15.0% to 16.0% commencing June 1, 2018. The maturity date for the NPA remained as January 13, 2020.
The foregoing description of the Amendment is a summary only and is qualified in its entirety by the full text of the Amendment and the Second Note filed as Exhibits 10.1, and 10.2, respectively, to this Form 8-K and is incorporated herein by reference.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
| 10.1 | Form of Forbearance and Third Amendment Agreement dated May 4, 2018 * |
*Certain schedules, appendices and exhibits to this agreement have been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished supplementally to the Securities and Exchange Commission staff upon request.
usell.com, Inc. ExhibitEX-10.1 2 s110105_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 FORBEARANCE AND THIRD AMENDMENT AGREEMENT This Forbearance and Third Amendment Agreement (this “Amendment Agreement”),…To view the full exhibit click here
About uSell.com, Inc. (OTCMKTS:USEL)
uSell.com, Inc. (uSell) is a technology-based company. The Company focuses on extracting the value from used mobile devices. It acquires products from both individual consumers, on its Website, uSell.com, and from carriers, retailers and manufacturers through its subsidiary, We Sell Cellular, LLC. These devices are then distributed across the world, which leverages an online marketplace where professional buyers of used smartphones compete to buy inventory in an on-demand fashion. The Company, through uSell.com, allows individual consumers to find cash offers for their items based on the make, model, and condition of each item. Upon accepting an offer, consumers can ship their devices for free using either a prepaid shipping kit or shipping label, and then track the progress of their orders online from initiation to final payment of their devices.
