PropTech Investment Corporation II filed SEC Form 8-K: Events That Accelerate or Increase a Direct Financial Obligation, Regulation FD Disclosure
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Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Item 7.01 Regulation FD Disclosure
On September 5, 2023 Appreciate Holdings, Inc. (“Company”) received a letter from its senior lender St. Cloud Capital Partners III SBIC, LP (“St. Cloud”). The letter noted that as a result of the Company’s failure to satisfy certain conditions, St. Cloud considers the previously executed Forbearance Agreement terminated. The letter indicates that St. Cloud has determined to exercise its rights and remedies under the Loan Agreement dated January 2, 2019, and accelerates amounts due under the Loan Agreement. As of August 1, 2023 the amounts due to St. Cloud, including the Forbearance fee and costs and expenses, totaled $10.6 million.
The Company is in active discussions with St. Cloud concerning these matters. If the Company is unable to reach agreement with St. Cloud regarding a new forbearance agreement or accommodation, there is a risk that St. Cloud could exercise its rights and remedies as a secured lender, including potentially foreclosing on its collateral, which includes substantially all of the Company’s assets.
Subsequent to the date of the letter, St. Cloud advanced funds to the Company pursuant to the Loan Agreement of approximately $0.5 million.
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.
| Appreciate Holdings, Inc. | ||
| Date: September 11, 2023 | By: | /s/ Christopher Laurence |
| Name: | Christopher Laurence | |
| Title: | Chief Executive Officer | |