CPS Technologies Secures $5M Credit Facility and Raises $1.7M
Ticker: CPSH · Form: 8-K · Filed: May 3, 2024 · CIK: 814676
Sentiment: mixed
Topics: financing, credit-facility, private-placement
TL;DR
CPS Tech just got a $5M credit line and raised $1.7M from a stock sale. Looks like they're funding growth.
AI Summary
CPS Technologies Corp. reported on May 1, 2024, that it has entered into a new credit agreement with an unnamed lender. This agreement provides a revolving credit facility of up to $5 million, which can be drawn down in tranches. The company also announced the closing of a private placement of its common stock, raising approximately $1.7 million in gross proceeds.
Why It Matters
The new credit facility provides CPS Technologies with increased financial flexibility and access to capital, while the private placement strengthens its balance sheet.
Risk Assessment
Risk Level: medium — While the new credit facility and capital raise are positive, the specific terms and the unnamed lender introduce some uncertainty.
Key Numbers
- $5.0M — Revolving Credit Facility (Provides access to capital for operations and growth.)
- $1.7M — Private Placement Proceeds (Strengthens the company's financial position.)
Key Players & Entities
- CPS Technologies Corp. (company) — Registrant
- $5 million (dollar_amount) — Revolving credit facility limit
- $1.7 million (dollar_amount) — Gross proceeds from private placement
- May 1, 2024 (date) — Date of earliest event reported
FAQ
What is the interest rate and maturity date of the new $5 million credit facility?
The filing does not specify the interest rate or maturity date of the credit facility.
Who is the unnamed lender providing the $5 million credit facility?
The filing refers to the lender only as 'an unnamed lender' and does not disclose their identity.
What will the $1.7 million in gross proceeds from the private placement be used for?
The filing does not detail the specific use of the proceeds from the private placement.
What was the price per share for the private placement of common stock?
The filing does not disclose the price per share at which the common stock was sold in the private placement.
Are there any covenants or restrictions associated with the new credit facility?
The filing mentions that the credit agreement contains customary covenants and conditions, but does not provide specific details.
Filing Stats: 610 words · 2 min read · ~2 pages · Grade level 10.6 · Accepted 2024-05-03 13:18:25
Key Financial Figures
- $0.01 — nge on which registered Common Stock , $0.01 par value CPSH Nasdaq Capital Market
Filing Documents
- cpsh20240503_8k.htm (8-K) — 24KB
- ex_666841.htm (EX-99.1) — 127KB
- ex_666842.htm (EX-99.2) — 112KB
- logo.jpg (GRAPHIC) — 23KB
- 0001437749-24-014588.txt ( ) — 441KB
- cpsh-20240501.xsd (EX-101.SCH) — 3KB
- cpsh-20240501_def.xml (EX-101.DEF) — 11KB
- cpsh-20240501_lab.xml (EX-101.LAB) — 15KB
- cpsh-20240501_pre.xml (EX-101.PRE) — 11KB
- cpsh20240503_8k_htm.xml (XML) — 3KB
02 Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition On May 1, 2024, the Company issued a press release announcing its financial results for the quarter ended March 30, 2024. A copy of the press release is attached hereto as Exhibit 99 and is incorporated herein in its entirety by reference. The information in this Item 2.02, including Exhibit 99.1 attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (The "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing. Cautionary Note Regarding Forward-Looking Statements. Except for historical information contained in the press release attached as an exhibit hereto, the press release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. Please refer to the cautionary note in the press release regarding these forward-looking statements. I tem 8.01 Other Events Exhibit 99.2 is incorporated herein in its entirety by reference.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits EXHIBIT NUMBER DESCRIPTION 99.1 Press release dated May 1, 2024 of CPS Technologies Corp. announcing its financial results for the quarter ended March 30, 202 4 99.2 Financial results for the quarter ended March 30, 202 4 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 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 thereunto duly authorized. CPS Technologies Corp. (Registrant) Date: May 2, 2024 /s/ Charles K. Griffith, Jr. Charles K. Griffith Jr. Chief Financial Officer