|6 Months Ended|
Jun. 30, 2020
|Subsequent events [Abstract]|
Note 21 - Subsequent events
Revolving line of credit and guarantor warrants
On July 16, 2020, the Company received a revolving line of credit in the aggregate amount of $7.5 million (the “ABL Facility”) from Citizens Business Bank, a California banking corporation, pursuant to a business loan agreement (the “ABL Agreement”). The proceeds of the ABL Facility will be used (i) to repay all principal, interest and fees outstanding under the Company’s existing revolving credit facility and (ii) for general corporate purposes.
The ABL Facility matures on July 5, 2022 and bears interest at a variable rate of LIBOR plus 250 basis points, with an interest rate floor of 3.25% per annum. Accrued interest on the ABL Facility is payable monthly, commencing on August 5, 2020. The ABL Facility provides for customary financial covenants that commence on December 31, 2020 and customary events of default. The Company may prepay the principal of the ABL Facility at any time without penalty.
The ABL Facility is secured by a general security interest on the assets of the Company and is personally guaranteed by a member of the Company’s board of directors.
In consideration of the personal guaranty, the Company issued common stock purchase warrants (the “July 2020 Warrants”) to purchase up to 300,000 shares of the Company’s common stock at a price equal to $1.05 per share. The July 2020 Warrants are exercisable on the date of issuance and expire on the earlier of (i) 84 months from the date of the consummation of an underwritten public offering or other uplist transaction or (ii) June 30, 2030.
On July 20, 2020, the Company issued common stock purchase warrants to purchase up to 200,000 shares of the Company’s common stock at price equal to $1.05 per share. The warrants are exercisable on the date of issuance and expire on the earlier of (i) 84 months from the date of the consummation of an underwritten public offering or other uplist transaction or (ii) June 30, 2030.
On July 31, 2020 Better Choice Company Inc. filed a certificate of incorporation with the State of Delaware which increased the number of authorized shares of common stock from 88,000,000 to 200,000,000.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef