ADDvantage Technologies Group Inc. filed SEC Form 8-K: Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation
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Office Equipment/Supplies/Services
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported) December 17, 2023
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Item 1.01 Entry into a Material Definitive Agreement.
On December 17, 2023, ADDvantage Technologies Group, Inc. (the “Company”) signed Modification Addendums (the “Modification”) to its accounts receivable purchase facilities with Vast Bank, N.A. (“Vast”) for its subsidiaries, namely Nave Communications Company (“Nave”), ADDvantage Triton, LLC (“Triton”) and Fulton Technologies, Inc. (“Fulton”) pursuant to which Vast agreed to extend the Nave, Triton, and Fulton accounts receivable purchase facilities to April 17, 2024.
After Modification, the Nave and Triton facilities provide credit capacities of $5.0 million and $1.0 million, respectively. Vast will charge a fee of 2.45% to Nave and 1.95% to Triton of sold receivables.
The Fulton facilities, after Modification, provide a credit capacity excluding a major customer of $5.0 million, with a fee of 2.0% of sold receivables, and credit capacity secured by receivables of a major customer of $0.5 million, with a fee of 1.6% of sold receivables.
For all four facilities, Vast advances 90% of sold receivables and establishes a reserve of 10% of the sold receivables at initial sale, which increases to 100% over time after 120 days, until the Company collects the sold receivables.
Item 2.03 Creation of a Direct Financial Obligation or An Obligation Under an Off-Balance Sheet Arrangement.
The information included or incorporated by reference in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this item 2.03.
| SIGNATURES | ||
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ADDvantage Technologies Group, Inc. | ||||||||
Date: December 21, 2023 | /s/ Michael A. Rutledge | |||||||
Name: Michael A. Rutledge | ||||||||
Title: Chief Financial Officer | ||||||||