KonaTel enters $1.365M installment sale agreement with ACP Finance for device purchases

KonaTel, Inc.

Initial credit of $1,365,000 under 24-month Installment Sale Agreement with ACP Financing VII LLC.
Credit capacity may increase up to $5,000,000; 3% origination cost paid over 12 months.
Agreement supports purchase of 4G+ devices for ACP/Lifeline distribution; $2,000/month admin fee.
Facility subordinate to existing CCUR loan; early termination penalty 2% in year one, 1% in year two.
If Tempo Telecom divestiture not completed by July 14, 2024, company may prepay without penalty.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

KonaTel, Inc. entered into Installment Sale Agreement with ACP Financing VII Limited Liability Company valued at Initial credit facility of $1,365,000, available to increase to $5,000,000 (effective 2023-12-18).

Action: entry
Agreement: credit facility
Counterparty: ACP Financing VII Limited Liability Company
Value: Initial credit facility of $1,365,000, available to increase to $5,000,000
Effective: 2023-12-18

Exact text from the filing

Effective December 18, 2023, the Company and IM Telecom, as “Purchasers,” entered into an Installment Sale Agreement (the “Installment Sale Agreement”) with ACP Financing VII Limited Liability Company, a Texas limited liability company (“ACP Finance”), as “Seller,” pursuant to which Seller has agreed to purchase new and refurbished cellular devices for distribution through the Purchaser’s distribution network to Affordable Connectivity Program (“ACP”) Federal Lifeline and California Lifeline eligible consumers, such devices operating on 4G or better technology platforms or any such other consumer technology equipment upon the mutual agreement of Seller and Purchaser (the “ Devices ”), and to sell such Devices to Purchaser.

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Source: SEC EDGAR

accession 0001515971-23-000170

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