CynergisTek, Inc. announced that it has modified its debt through a new agreement with BMO Harris Bank, N.A. (BMO). The restructuring included paying off the Company's Avidbank term loan and 75% of the amount due pursuant to promissory notes from the January 2017 acquisition of CynergisTek. Below is a summary of the transaction: Issuance of a new 4.5 year $17,250,000 term loan and a $5,000,000 revolving line of credit from BMO (BMO Harris Bank, N.A.), repayment in full and cancellation of the current Avidbank term loan and line of credit, repayment of $6,750,000 of the amounts due under promissory notes to Mr. Mac McMillan and Dr. Michael Hernandez, extension of the maturity of the remaining $2,250,000 promissory note to Mr. McMillan, modification of the earnout provisions to guarantee Dr. Mike Hernandez's earnout through a $3,750,000 note issuance with a five year maturity earning interest at 5% and reducing Mr. McMillan's remaining earnout potential to $1,200,000, tied to financial performance for the next three years, as set by the board of directors at the beginning of each year.

Commensurate with this restructuring, Dr. Michael Hernandez has resigned as COO of CynergisTek effective March 12, 2018 and will step down from the Board of Directors to pursue other opportunities. Dr. Hernandez has been working with the leadership team on this transition.