VISUALANT, INCORPORATED (OTCMKTS:VSUL) 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.
Capital Source Business Finance Group
Visualant, Incorporated (the “Company”) finances its TransTech operations from operations and a Secured Credit Facility with Capital Source Business Finance Group. On December 9, 2008, TransTech entered into a $1,000,000 secured credit facility with Capital Source to fund its operations. On June 6, 2017, TransTech entered into the Fourth Modification to the Loan and Security Agreement. This secured credit facility was renewed until June 12, 2018. with a floor for prime interest of 4.5% (currently 4.5%) plus 2.5%. The eligible borrowing is based on 80% of eligible trade accounts receivable, not to exceed $500,000. The secured credit facility is collateralized by the assets of TransTech, with a guarantee by Visualant, including a security interest in all assets of Visualant. The remaining balance on the accounts receivable line of $213,277 as of June 30, 2017 must be repaid by the time the secured credit facility expires on June 12, 2018, or the Company renews by automatic extension for the next successive one year term.
The Fourth Modification to the Loan and Security Agreement will be attached as an exhibit to the Company’s Form 10-Q for the three months ended June 30, 2017.
About VISUALANT, INCORPORATED (OTCMKTS:VSUL)
Visualant, Incorporated is focused primarily on the development of ChromaID, a technology that uniquely identifies and authenticates any substance. The Company is in the process of commercializing its ChromaID technology. The Company’s ChromaID utilizes light at the photon (elementary particle of light) level through a series of emitters and detectors to generate a unique signature or fingerprint from a scan of any solid, liquid or gaseous material. This signature of reflected or transmitted light is digitized, creating a unique ChromaID signature. Each ChromaID signature consists of from hundreds to thousands of specific data points. In normal operation, a ChromaID master or reference scan is generated and stored in a database. The scan head can then scan similar materials to identify, authenticate or diagnose them by comparing the new ChromaID digital signature scan to that of the original or reference ChromaID signature or scan result.