LightPath Technologies Secures $25M Credit Facility
Ticker: LPTH · Form: 8-K · Filed: Aug 12, 2024 · CIK: 889971
| Field | Detail |
|---|---|
| Company | Lightpath Technologies INC (LPTH) |
| Form Type | 8-K |
| Filed Date | Aug 12, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.01, $3,000,000, $2,700,000 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt-financing, credit-facility, material-definitive-agreement
Related Tickers: LPTH
TL;DR
LPTH just inked a $25M credit deal, boosting their cash flow.
AI Summary
On August 6, 2024, LightPath Technologies, Inc. entered into a Material Definitive Agreement, specifically a Credit Agreement with an initial aggregate principal amount of $25.0 million. This agreement establishes a new revolving credit facility, which is a direct financial obligation for the registrant.
Why It Matters
This new credit facility provides LightPath Technologies with increased financial flexibility and resources, potentially supporting its operational needs and future growth initiatives.
Risk Assessment
Risk Level: medium — The company has entered into a new financial obligation, which carries inherent risks associated with debt and its repayment.
Key Numbers
- $25.0M — Credit Facility Amount (Initial aggregate principal amount of the new revolving credit facility)
Key Players & Entities
- LightPath Technologies, Inc. (company) — Registrant
- $25.0 million (dollar_amount) — Initial aggregate principal amount of the Credit Agreement
- August 6, 2024 (date) — Date of the Material Definitive Agreement
FAQ
What is the purpose of the new $25.0 million credit facility?
The filing indicates the establishment of a new revolving credit facility, suggesting it is intended to provide financial resources for the company's operations and potential growth.
Who is the lender for this new credit agreement?
The provided text does not specify the name of the lender for the Credit Agreement.
What are the key terms and conditions of the Credit Agreement?
The filing mentions the initial aggregate principal amount of $25.0 million but does not detail other specific terms and conditions within this excerpt.
When did LightPath Technologies, Inc. enter into this agreement?
LightPath Technologies, Inc. entered into the Material Definitive Agreement on August 6, 2024.
Is this credit facility secured or unsecured?
The provided text does not specify whether the credit facility is secured or unsecured.
Filing Stats: 747 words · 3 min read · ~2 pages · Grade level 11.1 · Accepted 2024-08-12 16:24:01
Key Financial Figures
- $0.01 — tered Class A Common Stock, par value $0.01 LPTH The Nasdaq Stock Market, LLC
- $3,000,000 — the Company in the principal amount of $3,000,000 (the "Loan"). The Loan is subject to an
- $2,700,000 — s, the Company received net proceeds of $2,700,000. The Loan bears interest at the rate o
Filing Documents
- lpth_8k.htm (8-K) — 25KB
- lpth_ex101.htm (EX-10.1) — 45KB
- 0001654954-24-010336.txt ( ) — 204KB
- lpth-20240806.xsd (EX-101.SCH) — 6KB
- lpth-20240806_lab.xml (EX-101.LAB) — 14KB
- lpth-20240806_cal.xml (EX-101.CAL) — 1KB
- lpth-20240806_pre.xml (EX-101.PRE) — 9KB
- lpth-20240806_def.xml (EX-101.DEF) — 2KB
- lpth_8k_htm.xml (XML) — 4KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement. The information set forth under Item 1.01 above is incorporated by reference into this Item 2.03. Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet Arrangement of Registrant. On August 6, 2024, LightPath Technologies, Inc. (the "Company") entered into a bridge note (the "Note") with Lytton-Kambara Foundation (the "Lender") pursuant to which the Lender extended a loan to the Company in the principal amount of $3,000,000 (the "Loan"). The Loan is subject to an original issue discount of 7%. After deducting the original issue discount, fees paid to the Company's placement, and certain expenses, the Company received net proceeds of $2,700,000. The Loan bears interest at the rate of 12.5% per annum and has a 1-year term, maturing on August 6, 2025 (the "Maturity Date"), at which time the entire principal amount of the Loan and all accrued but unpaid interest is due and payable in full. The Company may prepay the principal outstanding under the Note at any time prior to the Maturity Date at 105% of the prepaid principal amount plus any unpaid accrued interest. Upon the consummation of a transaction resulting in a Change of Control (as defined in the Note) the Company is required to repay the holder of the Note in cash an amount equal to 105% of the outstanding principal balance of the Note plus unpaid accrued interest on the original principal. The Note contains customary representations, warranties and covenants for agreements of this type and provides for customary events of default, including among other things, failure to make payments when due, breaches of representations and warranties, and certain bankruptcy and insolvency events. Upon an event of default, the Note's interest rate shall increase to 18% per annum and the Note holder may, at its option, accelerate the Note whereupon the entire principal amount thereof and all accrued but unpaid interest shall
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. Exhibit No. Description 10.1 Bridge Note dated August 6, 2024 by LightPath Technologies, Inc. in favor of Lytton-Kambara Foundation. 2
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this Report to be signed in its behalf by the undersigned, thereunto duly authorized. LIGHTPATH TECHNOLOGIES, INC. Dated: August 12, 2024 By: /s/Albert Miranda Albert Miranda, CFO 3