Horizon Technology Finance Corp. Files 8-K

TL;DR

HTFC filed an 8-K detailing new financial obligations and equity sales.

AI Summary

Horizon Technology Finance Corp. entered into a material definitive agreement on October 17, 2024, related to a direct financial obligation. The company also reported on the creation of an obligation under an off-balance sheet arrangement and unregistered sales of equity securities. Specific details regarding the financial obligations and equity sales are not fully elaborated in the provided text.

Why It Matters

This filing indicates new financial obligations and potential equity issuances, which could impact the company's financial structure and shareholder value.

Risk Assessment

Risk Level: medium — The filing mentions material definitive agreements, financial obligations, and unregistered equity sales, which can introduce financial and operational risks.

Key Players & Entities

• Horizon Technology Finance Corp. (company) — Registrant
• October 17, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share HRZN The Nasdaq Stock Mar
• $20,000,000 — onnection with the issuance and sale of $20,000,000 aggregate principal amount of the Compa
• $18.6 million — the Convertible Notes of approximately $18.6 million. The Company intends to use the net pro

Filing Documents

• hrzn20241016_8k.htm (8-K) — 39KB
• ex_733591.htm (EX-10.1) — 260KB
• 0001437749-24-031521.txt ( ) — 508KB
• hrzn-20241018.xsd (EX-101.SCH) — 4KB
• hrzn-20241018_def.xml (EX-101.DEF) — 13KB
• hrzn-20241018_lab.xml (EX-101.LAB) — 18KB
• hrzn-20241018_pre.xml (EX-101.PRE) — 13KB
• hrzn20241016_8k_htm.xml (XML) — 6KB

01

Item 1.01 Entry into a Material Definitive Agreement Convertible Notes On October 17, 2024, Horizon Technology Finance Corporation (the " Company ") entered into a note purchase agreement (the " Note Purchase Agreement "), by and among the Company and each purchaser named therein (the " Purchasers "), in connection with the issuance and sale of $20,000,000 aggregate principal amount of the Company's 7.125% Convertible Notes due 2031 (the " Convertible Notes "), in a transaction exempt from registration pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The Company received net proceeds (before expenses) from the sale of the Convertible Notes of approximately $18.6 million. The Company intends to use the net proceeds from this offering to make investments in accordance with its investment objective and investment strategy and for general corporate purposes. The Convertible Notes mature on October 17, 2031 (the " Maturity Date "), unless earlier converted or repurchased in accordance with their terms. The Convertible Notes bear interest at a rate of 7.125% per annum, subject to additional interest upon certain events, payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on December 31, 2024. If an investment grade rating is not maintained with respect to the Convertible Notes or the rating of the Convertible Notes is downgraded below investment grade, additional interest of 1.00% per annum will accrue on the Convertible Notes until such time as the Convertible Notes have received an investment grade rating of "BBB-" (or its equivalent) or better. The Company will also be required to pay additional interest of 2.00% per annum (x) on any overdue payment of interest and (y) during the continuance of an Event of Default (as defined in the Note Purchase Agreement). In addition, on the occurrence of a Change in Control Repurchase Event (as defined in the Note Purchase Agreement) or Delisting Event

01

Item 1.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant The disclosure required by this Item 2.03 is contained in Item 1.01 of this Current Report on Form 8-K and is incorporated herein by reference. Section 3 Securities and Trading Markets

01

Item 1.01 Unregistered Sales of Equity Securities The disclosure required by this Item 3.02 is contained in Item 1.01 of this Current Report on Form 8-K and is incorporated herein by reference. Section 9

Financial Statements and Exhibits

Financial Statements and Exhibits

Financial Statements and Exhibits

Financial Statements and Exhibits (d) Exhibits. 10.1* Note Purchase Agreement, dated as of October 17, 2024, by and among the Company and the Purchasers 104 Cover Page Interactive Data File (embedded within Inline XBRL document) * Certain portions of this exhibit have been omitted in accordance with Item 601(b)(10)(vi) of Regulation S-K. The registrant agrees to furnish supplementally an unredacted copy of this exhibit to the Securities and Exchange Commission upon its request. 2 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. Date: October 17, 2024 HORIZON TECHNOLOGY FINANCE CORPORATION By: /s/ Robert D. Pomeroy, Jr. Robert D. Pomeroy, Jr. Chief Executive Officer 3

View Full Filing

View this 8-K filing on SEC EDGAR