GIGA-TRONICS INCORPORATED Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On October 31, 2023, Giga-Tronics Incorporated (the "Company") issued Ault Lending, LLC ("Ault Lending") a $1,000,000 12% Senior Secured Subordinated Promissory Note (the "New Ault Note"). The New Ault Note is convertible on the same terms as the 10% Senior Secured Convertible Promissory Note (the "Prior Note") issued to Ault Lending in December 31, 2022, except with the principal amount owed equal to the aggregate sums so borrowed, a maturity date of June 30, 2025 and an interest rate of 12% per annum. The terms of the Prior Note are disclosed in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on January 6, 2023.
As of the date of this Current Report on Form 8-K, the Company has borrowed $766,405 (excluding interest) under the New Ault Note.
The New Ault Note is secured and subordinated to all rights of the Senior Creditors as defined by that certain Subordination Agreement by and among Ault Alliance, Inc. and the Senior Creditors dated January 10, 2023.
The foregoing description of the terms of the Ault Note and the transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the form of the New Ault Note, which is filed as Exhibit 4.1 to this Current Report on Form 8-K and is incorporated herein by reference.
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Giga-tronics Incorporated published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 21:04:56 UTC.
