---
schema_version: "secwatch.filing_event.v1"
accession: "0001193125-23-135812"
form_type: "8-K"
ticker: null
cik: "0000915358"
company_name: "SIGMATRON INTERNATIONAL INC"
filed_at: "2023-05-04T23:59:59+00:00"
generated_at: "2026-06-15T23:51:03.435806+00:00"
event_type: "m_and_a"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# SigmaTron resolves defaults by selling 81% of Wagz for $1, taking $2.5-3M impairment

## Summary
- Sale of 81% stake in Wagz to Vynetic LLC for $1; SigmaTron retains 19% as passive investor, effective April 1, 2023.
- Lenders waive all covenant violations through March 31, 2023; amended agreements impose new EBITDA ratios and $2.5M minimum revolver availability.
- Company provided $900K working capital loan to Wagz; expects non-cash impairment of ~$2.5-3M in Q4 FY2023 beyond prior $23.1M charge.
- Amendment fees: $70K cash to JPMorgan; $395K fee and $188K default rate added to TCW term loan principal.
- Company expects to file delayed Q3 10-Q before Nasdaq deadline of May 22, 2023, then work on Q4/FY financials.

## SEC filing metadata
- accession: 0001193125-23-135812
- form_type: 8-K
- cik: 0000915358
- company_name: SIGMATRON INTERNATIONAL INC
- filed_at: 2023-05-04T23:59:59+00:00
- event_type: m_and_a
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 2.01, 2.05, 2.06, 8.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/915358/000119312523135812/0001193125-23-135812-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/915358/000119312523135812/d292138d8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001193125-23-135812
- JSON: https://secwatch.observer/filing/0001193125-23-135812.json
- Plain text: https://secwatch.observer/filing/0001193125-23-135812.txt

## Key facts
- Material Agreements
  SIGMATRON INTERNATIONAL INC amended JPM Waiver with JPMorgan Chase Bank, N.A. (effective 2023-04-28).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: JPMorgan Chase Bank, N.A.
  - Effective: 2023-04-28
  source text: On April 28, 2023, SigmaTron International, Inc., a Delaware corporation (the “Company”) entered into (i) a Waiver, Consent and Amendment No. 1 to the Credit Agreement (“JPM Waiver”) by and among the Company, Wagz, Inc. (“Wagz”) and JPMorgan Chase Bank, N.A., as lender (“JPM”), with respect to that certain Amended and Restated Credit Agreement dated as of July 18, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the “JPM Credit Agreement”) by and among the Company, the other loan party thereto, and JPM
  evidence_url: https://www.sec.gov/Archives/edgar/data/915358/000119312523135812/0001193125-23-135812-index.htm
- Material Agreements
  SIGMATRON INTERNATIONAL INC amended TCW Waiver with TCW Asset Management Company LLC (effective 2023-04-28).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: TCW Asset Management Company LLC
  - Effective: 2023-04-28
  source text: On April 28, 2023, SigmaTron International, Inc., a Delaware corporation (the “Company”) entered into (i) a Waiver, Consent and Amendment No. 1 to the Credit Agreement (“JPM Waiver”) by and among the Company, Wagz, Inc. (“Wagz”) and JPMorgan Chase Bank, N.A., as lender (“JPM”), with respect to that certain Amended and Restated Credit Agreement dated as of July 18, 2022 (as amended, restated, supplemented or otherwise modified from time to time, the “JPM Credit Agreement”) by and among the Company, the other loan party thereto, and JPM and (ii) a Waiver, Consent and Amendment No. 1 to the Credit Agreement (“TCW Waiver”) by and among the Company, Wagz, the financial institutions identified therein (the “TCW Lenders”) and TCW Asset Management Company LLC as administrative agent for the TCW Lenders (in such capacity, the “Agent” and collectively with the TCW Lenders and JPM, the “Lender Parties”) with respect to that certain Credit Agreement date as of July 18, 2022 (as amended, restated,
  evidence_url: https://www.sec.gov/Archives/edgar/data/915358/000119312523135812/0001193125-23-135812-index.htm
- Restructurings & Charges
  SIGMATRON INTERNATIONAL INC announced a impairment with charges of approximately $2.5 million to $3.0 million affecting Pet Tech business.
  - Type: impairment
  - Charge: approximately $2.5 million to $3.0 million
  - Affected area: Pet Tech business
  source text: the Company expects to incur a non-cash impairment charge of approximately $2.5 million to $3.0 million related to the sale of the business, which the Company expects to record in its financial statements for the Company’s fourth quarter of its fiscal year 2023 ended April 30, 2023; the charge primarily relates to the impairment of certain assets that were not transferred to Buyer in connection with the sale transaction.
  evidence_url: https://www.sec.gov/Archives/edgar/data/915358/000119312523135812/0001193125-23-135812-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.