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 2,
2018
AMERICAN BIO MEDICA
CORPORATION
(Exact
name of registrant as specified in its charter)
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New
York
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0-28666
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14-1702188
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(State
or other jurisdiction of incorporation)
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(Commission File
Number)
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(IRS
Employer Identification Number)
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122 Smith Road,
Kinderhook, NY
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12106
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(Address of
principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code: 518-758-8158
Not applicable
(Former name or 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 (see
General Instruction A.2.
below):
☐
Written communications pursuant to
Rule 425 under the Securities Act (17 CFR
230.425)
☐
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))
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933
(§230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (§240.12b-2 of this
chapter).
Emerging
growth company ☐
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act.
ITEM
1.01
Entry
into a Material Definitive Agreement
On
March 2, 2018 (the “Closing Date”), American Bio Medica
Corporation (the “Company”) entered into a one-year
Loan Agreement (the “Agreement”) with Cherokee
Financial, LLC (“Cherokee”) under which Cherokee will
provide the Company with $150,000. The proceeds from the loan will
be used by the Company to pay a $75,000 principal reduction payment
to Cherokee and $1,000 in legal fees in connection with the
financing. Net proceeds to the Company are $74,000 and, they will
be used for working capital and general business
purposes.
The
annual interest rate under the Loan Agreement is 12% paid quarterly
in arrears with the first interest payment being due on May 15,
2018. The loan is required to be paid in full on February 15, 2019
unless paid off earlier (with no penalty) at the Company’s
sole discretion. In connection with the Loan Agreement, the Company
is required to issue 150,000 restricted shares of common stock to
Cherokee within thirty (30) days of the Closing Date.
In the
event of default, this includes, but is not limited to, the
Company’s inability to make any payments due under the Loan
Agreement, Cherokee has the right to increase the interest rate on
the financing to 18% and the Company would be required to issue and
additional 150,000 restricted shares of common stock to
Cherokee.
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SIGNATURES
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.
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AMERICAN BIO MEDICA
CORPORATION (Registrant)
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Date:
March 8,
2018
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By:
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/s/
Melissa A.
Waterhouse
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Melissa A. Waterhouse |
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Chief
Executive Officer (Principal Executive Officer)
Principal Financial
Officer
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