secwatch.observer — SEC 8-K summary
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Issuer:     AIR T INC (AIRT)
CIK:        0000353184
Form:       8-K
Filed at:   2024-05-31T23:59:59+00:00
Accession:  0000353184-24-000059
Event type: other_material
Sentiment:  neutral
Materiality: 0.65
Item codes: 1.01, 2.03, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Air T subsidiary CAS redeems 16% of CEO's interest for $4.57M plus earnout
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- CAS will redeem 16% of Joe Kuhn’s 21% membership interest for $4.57M via secured subordinated note.
- Note bears interest at 10-year Treasury + 375 bps; 12-month interest-only then 3-year amortization with deferral if loan default risk.
- Earnout: annual payment of 9.14% of CAS Adjusted EBITDA above $7M through FY2029, subordinated to senior debt.
- Remaining 5% interest subject to put/call from April 2026 at 5% of CAS Equity Value (9x avg EBITDA minus debt).
- Transaction effective April 1, 2024; related-party with CAS's CEO.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/353184/000035318424000059/0000353184-24-000059-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/353184/000035318424000059/airt-20240531.htm
  HTML page:      https://secwatch.observer/filing/0000353184-24-000059

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