Castellum Inc.
09/04/2024 | Press release | Distributed by Public on 09/04/2024 17:02
Material Agreement Form 8 K
Item 1.01 Entry into a Material Definitive Agreement
On September 2, 2024, Castellum, Inc. (the "Company") and its subsidiaries entered into a loan modification agreement effective August 15, 2024 (the "Loan Modification Agreement") with Live Oak Banking Company (the "Lender") to modify certain terms of the revolving line of credit promissory note dated February 22, 2024 (the "Original Note"). Among other things, the Loan Modification Agreement (i) modified the definition of the term contained in the Original Note, (ii) required the Company to establish a collateral account with a balance of not less than $250,000 until such time as the senior debt service covenant is replaced by a total debt service covenant of 1:15 to 1:00 at which time the collateral funds shall be released at the Lender's sole discretion, (iii) modified the frequency of the reporting of the borrowing base from once a month to twice a month, and (iv) reduced the principal amount of the Original Note from $4,000,000 to $2,000,000.
The foregoing description of the Loan Modification Agreement is qualified in its entirety by reference to the full text thereof, which is attached as Exhibit 10.1 hereto.