Mill City Ventures III Ltd. filed SEC Form 8-K: Entry into a Material Definitive Agreement
UNITED STATES
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Item 1.01 Entry into a Material Definitive Agreement.
On January 22, 2025, Mill City Ventures III, Ltd. (“Mill City”) entered into an Amendment No. 5 to Fourth Short-Term Loan Agreement and Fourth Short-Term Promissory Note with Mustang Funding, LLC, to be deemed effective January 21, 2025. The amendment extends the maturity date of Mill City’s loan to Mustang Funding to March 28, 2027, and increases the per annum rate of interest to 20%. The amendment obligates Mustang Funding to continue paying monthly cash interest payments at the pre-amendment rate of 15% per annum, and to pay Mill City the additional 5% per annum interest upon maturity.
Mill City entered into the amendment in connection with its negotiations with both Mustang Funding and its senior creditor for (i) a security agreement with Mustang Funding to obtain collateral securing Mustang Funding’s obligations to Mill City under the Fourth Short-Term Loan Agreement and Fourth Short-Term Promissory Note, and (ii) an amended and restated subordination and intercreditor agreement with the senior creditor. The parties are presently in the process of executing and delivering signatures to the above-described agreements.
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SIGNATURE
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.
Mill City Ventures III, Ltd. | |||
| Date: January 28, 2025 | By: | /s/Joseph A. Geraci, II | |
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| Joseph A. Geraci, II Chief Financial Officer | |
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