Western Capital Resources, Inc. (OTCMKTS:WCRS) Files An 8-K Termination of a Material Definitive Agreement
Item 1.02 Termination of a Material Definitive Agreement
On October 8, 2019 Western Capital Resources, Inc., a Delaware corporation (OTCQB: WCRS) (the “Company”), terminated that certain Credit Agreement between the Company and Fifth Third, dated April 22, 2016, as amended (the “Credit Agreement”). Prior to its termination, the Credit Agreement, provided the Company with a revolving line of credit facility in an aggregate amount up to $3,000,000, with a maturity date of April 21, 2020 and an acquisition loan facility in an aggregate amount of up to $9,000,000, with a maturity date of April 21, 2020. The revolver and the acquisition loan facility were secured and bore interest at a floating per annum rate equal to one-month LIBOR plus 3.50%, adjusted on a monthly basis. The Company determined that it did not need a credit agreement at this time as it has sufficient liquidity from cash on hand and working capital. The Company may enter into a new credit agreement in the future. The Company did not incur any fees in connection with its early termination of the Credit Agreement.
About Western Capital Resources, Inc. (OTCMKTS:WCRS)
Western Capital Resources, Inc. (WCR) is a holding company. The Company’s segments are Franchise segment, Cellular Retail segment, Direct to Consumer segment and Consumer Finance segment. The Franchise segment consists of AlphaGraphics, Inc., the franchisor of AlphaGraphics customized print and marketing solutions. Its Cellular Retail segment consists of an authorized Cricket Wireless dealer and involves the retail sale of cellular phones and accessories to consumers through its subsidiary PQH Wireless, Inc. and its subsidiaries. Its Direct to Consumer segment consists of an online and direct marketing retailer and distributor of live plants, seeds, holiday gifts and garden accessories, and an online and direct marketing distribution retailer of home improvement and restoration products operating as Van Dyke’s Restorers. Its Consumer Finance segment consists of retail financial services conducted through its subsidiaries, Wyoming Financial Lenders, Inc. and Express Pawn, Inc.