Attached files
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| EX-10.1 - FINANCE, SECURITY AND AR AP MONETIZATION AGREEMENT - Youngevity International, Inc. | ex10-1.htm |
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 6,
2020
YOUNGEVITY INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware
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001-38116
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90-0890517
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(State
or other jurisdiction of incorporation)
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(Commission
File No.)
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(IRS
Employer Identification No.)
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2400 Boswell Road, Chula Vista, CA 91914
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area
code: (619)
934-3980
N/A
(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:
☐ 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))
Securities registered pursuant to Section 12(b) of the
Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common
Stock
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YGYI
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The
Nasdaq Capital Market
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Series
D Preferred Stock
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YGYIP
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The
Nasdaq Capital Market
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Indicate by check mark whether the registrant is an emerging growth
company as defined in 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 checkmark 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 6, 2020, CLR Roasters, Inc.(“CLR”), a wholly
owned subsidiary of Youngevity International, Inc. (the
“Company”) entered into a Finance, Security and ARAP
Monetization Agreement (the “Agreement”) with
H&H
Export Y CIA. LTDA, and H&H Coffee Group Export Corp
(collectively, “H&H”). H&H is the agent for the
independent green coffee growers from which CLR purchases its
unprocessed coffee beans and H&H also purchases processed
coffee beans from CLR that it sells to third parties. The owners of
H&H are also employees of CLR and manage the La Pita plantation
in Nicaragua for which they receive a percentage of profit derived
from green coffee sales processed in Nicaragua. Pursuant to the
Agreement, H&H has agreed to allow a Nicaraguan agency (the
“Agency”), to advance on behalf of H&H,
approximately $22 million of the $30.1 million of accounts
receivable owed by H&H to CLR for its purchase of processed
green coffee during the 2019 season. The Agency has also entered
into a $46.5 credit facility with H&H to provide funding for
H&H’s future coffee purchases of unprocessed green coffee
from independent producers. Of the 2020 sales amounts to be billed
by CLR for future coffee purchases of processed coffee, CLR will be
paid an additional amount, at a rate of $.225 per pound of
processed green coffee shipped to customers, to be applied to the
remaining outstanding 2019 accounts receivable balance owed by
H&H to CLR. Until such time as the entire accounts receivable
balance is paid in full, H&H has agreed not take any profit
interest. CLR expects this arrangement to ensure that it has an
adequate supply of unprocessed coffee beans for the 2020
season.
A copy
of the Finance, Security and AR AP Monetization Agreement, dated
March 6, 2020, by and between H&H Coffee Group Export Corp,
H&H Export Y CIA. LTDA. and CLR Roasters, Inc. is attached as
an exhibit to this Current report on Form 8-K and is incorporated
herein reference.
Item 9.01 Financial Statements and
Exhibits.
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(d)
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Exhibits.
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Finance,
Security and AR AP Monetization Agreement, dated March 6, 2020 by
and between H&H Coffee Group Export Corp, H&H Export Y CIA.
LTDA. and CLR Roasters, Inc.
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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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YOUNGEVITY
INTERNATIONAL, INC.
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Date:
March 10, 2020
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By: /s/
David Briskie
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Name:
David Briskie
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Title:
President and Chief Financial Officer
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