secwatch / observer
8-K filed July 18, 2023, 7:59 PM ET CIK 0001407573
debt confidence high sentiment negative materiality 0.75

AmeriCrew Inc.: debt financing — AmeriCrew enters $2M credit line, defaults on $2.485M prior notes, accelerating debt at 18% interest

AmeriCrew Inc.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

AmeriCrew Inc. incurred revolving credit of $2,000,000 with Thermo Communications Funding, LLC at the lesser of (i) the maximum non-usurious rate permitted by applicable law, and maturing June 9, 2024.

Instrument
revolving credit
Principal
$2,000,000
Counterparty
Thermo Communications Funding, LLC
Rate
the lesser of (i) the maximum non-usurious rate permitted by applicable law, and
Maturity
June 9, 2024
Event
incurrence
Exact text from the filing
On June 9, 2023, Americrew Inc. (the “Company”) and Mikab Corporation, a wholly-owned subsidiary of the Company (“Mikab”), entered into a Loan and Security Agreement (the “Agreement”) with Thermo Communications Funding, LLC (the “Lender”) which provides for a $2,000,000 revolving line of credit facility (the “Line of Credit”) to be evidenced by a promissory note (the “Note”).
View on SEC.gov
Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

AmeriCrew Inc. reported a default on convertible notes of $2,485,000 at from 8% to 18%.

Instrument
convertible notes
Principal
$2,485,000
Rate
from 8% to 18%
Event
default
Exact text from the filing
As a result of the Agreement, the Note and the Line of Credit and related contemplated thereby, the Company is in default under certain of its outstanding indebtedness totaling $2,485,000 in connection with the Convertible Promissory Notes issued by the Company from October 2021 to October 2022 (the “Prior Notes”). This default results in the acceleration of the indebtedness evidenced by the Prior Notes, and an increase to the interest rate of the Prior Notes from 8% to 18%.
View on SEC.gov
Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

AmeriCrew Inc. amended credit facility.

Instrument
credit facility
Event
amendment
Exact text from the filing
In connection with the Agreement, the Company entered into a Limited Recourse Guaranty (“Guaranty”) with the Lender and Brian Weis, the Company’s President and Chief Operating Officer, pursuant to which Mr. Weis guaranteed the payment of any amounts borrowed by the Company and/or Mikab under the Line of Credit.
View on SEC.gov
Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

AmeriCrew Inc. entered into Loan and Security Agreement with Thermo Communications Funding, LLC valued at $2,000,000 (effective 2023-06-09).

Action
entry
Agreement
credit facility
Counterparty
Thermo Communications Funding, LLC
Value
$2,000,000
Effective
2023-06-09
Exact text from the filing
On June 9, 2023, Americrew Inc. (the "Company") and Mikab Corporation, a wholly-owned subsidiary of the Company ("Mikab"), entered into a Loan and Security Agreement (the "Agreement") with Thermo Communications Funding, LLC (the "Lender") which provides for a $2,000,000 revolving line of credit facility (the "Line of Credit") to be evidenced by a promissory note (the "Note").
View on SEC.gov

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Source: SEC EDGAR
accession 0001654954-23-009330
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