Attached files
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): June 14, 2011
SCIENTIFIC INDUSTRIES, INC.
_________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 000-6658 04-2217279
___________ ____________ __________________
(State or other (Commission (IRS Employer No.)
jurisdiction of File Number)
incorporation)
70 Orville Drive
Bohemia, New York 11716
__________________________________________________
(Address of principal executive offices)
(631) 567-4700
__________________________________________________
Registrant's telephone number, including area code
Not Applicable
__________________________________________________
(Former name or former address,
if changed since last report)
ITEM 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On June 14, 2011, the Company and JPMorgan Chase Bank, N.A.
(the "Bank") entered into a Business Loan Agreement pursuant
to which the Bank granted the Company a $700,000 line of
credit for the period ending June 13, 2013. Advances are to bear
interest at 3.08 percentage points over the LIBOR Index,
currently 3.25% per annum and are to be secured by a pledge of
Collateral consisting of the inventory, accounts, chattel paper,
equipment and general intangibles of the Company. Principal along
with interest are payable at maturity.
Maturity of principal and interest accelerate upon the occurrence
of an event of default. The events specified include failure to
pay outstanding obligations under the Note, a material adverse
change in the Company's financial condition or prospects and acts
of insolvency. During the period of default the interest rate
increase by 3% per annum.
The Company is required to reduce the outstanding principal balance
to zero during the 30 day period ending on the anniversary date of
the Note.
The facility replaces the Company's existing agreement relating to
$500,000 with its former bank, Capital One Bank, N.A.
ITEM 9.01 Financial Statements and Exhibits
(a) and (b) not applicable
(c) Exhibits
Exhibit No. Exibit
___________ _____________________________
99.1 Business Loan Agreement
99.2 Promissory Note
99.3 Commercial Security Agreement
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 hereunto duly authorized.
SCIENTIFIC INDUSTRIES, INC.
(Registrant)
Date: June 16, 2011
By: /s/ Helena R. Santos
Helena R. Santos,
President and Chief Executive
Officer
