AquaBounty Technologies Enters Material Definitive Agreement

TL;DR

AquaBounty just signed a big financial deal, filing an 8-K today.

AI Summary

AquaBounty Technologies, Inc. entered into a Material Definitive Agreement on April 18, 2024, related to a direct financial obligation. The company, incorporated in Delaware, filed this 8-K report on April 19, 2024, detailing this significant financial event.

Why It Matters

This filing indicates a significant financial commitment or obligation for AquaBounty Technologies, which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into material definitive agreements and financial obligations can introduce financial risks and operational changes for a company.

Key Numbers

• 001-36426 — SEC File Number (Identifies the company's filing history with the SEC.)
• 04-3156167 — IRS Employer Identification No. (Company's tax identification number.)

Key Players & Entities

• AquaBounty Technologies, Inc. (company) — Registrant
• April 18, 2024 (date) — Date of earliest event reported
• April 19, 2024 (date) — Filing date
• Delaware (jurisdiction) — State of incorporation

FAQ

Key Financial Figures

• $0.001 — ch registered Common Stock, par value $0.001 per share AQB The NASDAQ Stock Mark
• $10 million — rs through a secured term loan of up to $10 million (the "Loan") that matures on July 31, 2
• $5 million — therein) (the "Stated Maturity Date"). $5 million of the Loan will be advanced to the Bor
• $2,843,000 — ent. Of the Initial Loan, approximately $2,843,000 will be used by the Lender to purchase
• $1,000,000 — l held by First Farmers in an amount of $1,000,000 upon purchasing the First Farmers Loan

Filing Documents

• aqb-20240418x8k.htm (8-K) — 80KB
• aqb-20240418xex10_1.htm (EX-10.1) — 183KB
• 0001603978-24-000028.txt ( ) — 418KB
• aqb-20240418.xsd (EX-101.SCH) — 2KB
• aqb-20240418_lab.xml (EX-101.LAB) — 17KB
• aqb-20240418_pre.xml (EX-101.PRE) — 12KB
• aqb-20240418x8k_htm.xml (XML) — 5KB

01

Item 1.01 Entry into a Material Definitive Agreement. Loan And Security Agreement On April 18, 2024 (the "Closing Date"), AquaBounty Technologies, Inc. (the "Company"), AquaBounty Farms, Inc. (the "Parent"), which is a subsidiary of the Company, AquaBounty Farms Indiana LLC ("ABFI"), a subsidiary of the Parent, and AquaBounty Farms Ohio LLC ("ABFO" and, together with the Company, the Parent and ABFI, the "Borrowers"), a subsidiary of the Parent, entered into a Loan and Security agreement (the "Loan Agreement") with JMB Capital Partners Lending, LLC (the "Lender") to fund working capital of the Borrowers through a secured term loan of up to $10 million (the "Loan") that matures on July 31, 2024 or, if earlier, upon the sale of certain collateral or upon an Event of Default (as defined therein) (the "Stated Maturity Date"). $5 million of the Loan will be advanced to the Borrowers on the Closing Date (the "Initial Loan"), and an additional $5 million will be advanced to the Borrowers upon the satisfaction of certain conditions set out in the Loan Agreement. Of the Initial Loan, approximately $2,843,000 will be used by the Lender to purchase the Loan and Security Agreement ("First Farmers Loan Agreement"), dated as of July 31, 2020, between AQBI and First Farmers Bank & Trust ("First Farmers"). The Lender shall release cash collateral held by First Farmers in an amount of $1,000,000 upon purchasing the First Farmers Loan Agreement. The Loan bears interest at a rate of 15% on its outstanding principal balance and is subject to a commitment fee equal to 5% of the Lender's Commitment (as defined in the Loan Agreement), payable on the Closing Date, and an exit fee equal to 8% of the Lender's Commitment, payable upon the earlier of the payment of all or any portion of the principal amount of the Loan or upon the Stated Maturity Date. As mortgagee of ABFI's farm in Albany, Indiana (the "Albany Farm"), First Farmers shall assign the Mortgage, Assignment of Rents and

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 10.1* Loan and Security Agreement, dated as of April 18, 2024, by and among AquaBounty Technologies, Inc., AquaBounty Farms, Inc., AquaBounty Farms Indiana, AquaBounty Farms Ohio and JMB Capital Partner Lenders LLC 104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). (*) Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company will supplementally furnish copies of omitted schedules and exhibits to the Securities and Exchange Commission upon request.

SIGNATURES

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. AquaBounty Technologies, Inc. Date: April 19 , 2024 By: /s/ David A. Frank Name: David A. Frank Title: Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR