Current Report Filing (8-k)
March 30 2016 - 7:06AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): March 29, 2016
Advanced Environmental Recycling Technologies,
Inc.
(Exact name of registrant as specified
in its charter)
Delaware
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1-10367
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71-0675758
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(State or other jurisdiction
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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of incorporation or organization)
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914 N Jefferson Street
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72764
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Springdale, Arkansas
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(Zip Code)
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(Address of Principal Executive Offices)
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Registrant’s telephone number, including area code
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(479) 756-7400
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Not Applicable
(Former name and former address, if changed since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to
Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM
1.01
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ENTRY
INTO A MATERIAL DEFINITIVE AGREEMENT.
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On March 25, 2016,
the Company and Webster Business Credit Corporation (WBCC) entered into Amendment No. 1 (the Amendment) to the Credit and Security
Agreement dated October 30, 2015, which is discussed in more detail in Item 2.03 below.
ITEM 2.03
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CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE
SHEET ARRANGEMENT OF A REGISTRANT.
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On October 30, 2015, AERT entered into
a Credit and Security Agreement (the Agreement) with WBCC, a state banking institution organized under the laws of the State of
Connecticut for an asset-based Revolver loan capped at $8.5 million for the period June 1 to December 31 of each calendar year
and capped at $15.0 million for the five months ended May 31 of each calendar year, a $5.5 million Machinery and Equipment (M&E)
Loan, a $7.2 million Real Estate (RE) Loan, a $1.5 million asset-based loan (Term Loan) and a $1.2 million Capital Expenditure
(CAPEX) loan.
The purpose of Amendment No. 1 is to clarify
some terms within the agreement:
Amendments to Credit Agreement: Subject
to satisfaction of certain conditions, the Credit Agreement is hereby amended as follows:
The Credit Agreement is hereby amended to read as
follows:
Section 2.1(e)(ii) - “Each Capex Loan shall
be repaid in equal monthly installments of principal based on an eighty-four (84) month amortization schedule commencing with
the first day of the first calendar month following the date of the Capex Loan.”
Annex One - The defined
term “Borrowing Base” is hereby amended by deleting the reference to “plus” in clause (ii) and
inserting “minus” in lieu thereof.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
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ADVANCED ENVIRONMENTAL RECYCLING TECHNOLOGIES, INC.
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By:
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/s/ Timothy D. Morrison
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Timothy D. Morrison
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Chief Executive Officer and Director
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Date: March 29, 2016