Canterbury Park Enters Material Definitive Agreement

TL;DR

**CPHC just signed a big deal; details pending but could move the stock.**

AI Summary

Canterbury Park Holding Corporation filed an 8-K on February 2, 2024, reporting an "Entry into a Material Definitive Agreement" on January 31, 2024. This filing indicates that the company, which operates in racing and track operations, has entered into a significant new contract or agreement. For investors, this matters because material agreements can significantly impact future revenues, expenses, or strategic direction, potentially affecting the stock price of CPHC.

Why It Matters

This filing signals a new, important business arrangement for Canterbury Park, which could lead to new revenue streams or operational changes. Investors should monitor for details of this agreement as they become public.

Risk Assessment

Risk Level: medium — The filing indicates a material agreement but provides no details, creating uncertainty about its financial impact, which could be positive or negative.

Analyst Insight

A smart investor would monitor for subsequent filings or press releases from Canterbury Park Holding Corporation that provide details about this "Material Definitive Agreement" before making any investment decisions, as the impact could be substantial.

Key Numbers

• 001-37858 — Commission File Number (identifies Canterbury Park's registration with the SEC)
• 47-5349765 — IRS Employer Identification No. (identifies Canterbury Park for tax purposes)
• $.01 — par value per share (stated par value of Canterbury Park's Common Stock)

Key Players & Entities

• Canterbury Park Holding Corporation (company) — the registrant filing the 8-K
• January 31, 2024 (date) — date of the earliest event reported
• February 2, 2024 (date) — date the 8-K was filed
• CPHC (company) — trading symbol for Canterbury Park Holding Corporation
• The Nasdaq Stock Market (company) — exchange where CPHC common stock is registered

Forward-Looking Statements

• Canterbury Park will release further details about the Material Definitive Agreement. (Canterbury Park Holding Corporation) — high confidence, target: Q1 2024
• The stock price of CPHC will react significantly once the details of the agreement are disclosed. (CPHC) — medium confidence, target: Q1 2024

FAQ

Key Financial Figures

• $5.0 m — m borrowing under the line of credit to $5.0 million, which was reflected in the Fourt

Filing Documents

• cphc20240202_8k.htm (8-K) — 27KB
• ex_621980.htm (EX-10.1) — 57KB
• ex_621981.htm (EX-10.2) — 28KB
• 0001437749-24-002892.txt ( ) — 256KB
• cphc-20240131.xsd (EX-101.SCH) — 3KB
• cphc-20240131_def.xml (EX-101.DEF) — 11KB
• cphc-20240131_lab.xml (EX-101.LAB) — 15KB
• cphc-20240131_pre.xml (EX-101.PRE) — 11KB
• cphc20240202_8k_htm.xml (XML) — 3KB

01 Entry Into a Material Definitive Agreement

Item 1.01 Entry Into a Material Definitive Agreement. Effective January 31, 2024, (i) Canterbury Park Entertainment, LLC, (the "Borrower"), a Minnesota limited liability company and subsidiary of Canterbury Park Holding Corporation, a Minnesota corporation (the "Company"); (ii) the Company as Guarantor; (iii) Canterbury Park Concessions, Inc., a Minnesota corporation and subsidiary of the Company; and (iv) and Bremer Bank, National Association ("Bremer Bank") entered into the Seventh Amendment Agreement ("Seventh Amendment") to the General Credit and Security Agreement dated as of November 14, 2016, as amended ("Credit Agreement"). The Seventh Amendment extended the maturity date for the line of credit facility established under the Credit Agreement to January 31, 2027 and reduced the maximum borrowing under the line of credit to $5.0 million, which was reflected in the Fourth Amended and Restated Revolving Credit Note attached to the Seventh Amendment and entered into concurrently with the Seventh Amendment. In connection with the Seventh Amendment, Bremer Bank terminated a mortgage to release certain of the Borrower's real property as collateral and the Borrower entered into a Negative Pledge Agreement dated January 31, 2024 in favor of Bremer Bank by which the Borrower agreed not to create or suffer any liens or encumbrances on certain real property. The Seventh Amendment also changed the Credit Agreement's debt service coverage ratio to not less than 1.20 to 1.00 as of the end of each fiscal quarter of Borrower for the trailing 12 months, measured quarterly. The foregoing descriptions of the material terms of each of the Seventh Amendment and the Negative Pledge Agreement is not complete and is qualified in their respective entirety by reference to the full text of the Seventh Amendment and the Negative Pledge Agreement, copies of which are incorporated by reference as exhibits to this Current Report on Form 8-K and are incorporated herein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits Exhibit No. Description 10.1 Seventh Amendment Agreement effective January 31, 2024 by and among Canterbury Park Entertainment LLC, Canterbury Park Holding Corporation, Canterbury Park Concessions, Inc. and Bremer Bank, National Association. 10.2 Negative Pledge Agreement effective January 31, 2024 by Canterbury Park Entertainment LLC in favor of Bremer Bank, National Association. 104 Cover Page Interactive Data File (formatted as Inline XBRL).

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. CANTERBURY PARK HOLDING CORPORATION Dated: February 2, 2024 By: /s/ Randall D. Sampson Randall D. Sampson President and Chief Executive Officer

View Full Filing

View this 8-K filing on SEC EDGAR