Current Report Filing (8-k)
December 09 2019 - 4:40PM
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):
December 9, 2019
RECRUITER.COM GROUP, INC.
(Exact name of registrant as specified in its
charter)
Delaware
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000-53641
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26-3090646
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(State or other Jurisdiction
of Incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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100 Waugh Dr. Suite 300, Houston, Texas
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77007
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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: (855)-931-1500
(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))
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. ☐
Securities registered pursuant to Section 12(b) of the Act: None
Item 1.01. Entry into
a Material Definitive Agreement.
On
December 9, 2019, Recruiter.com Group, Inc. (the “Company”) and Recruiter.com, Inc., Recruiter.com Recruiting Solutions
LLC, and VocaWorks, Inc., each a wholly owned subsidiary of the Company (each a “Subsidiary” and together, the “Subsidiaries”),
entered into a Merchant Receivables Purchase and Security Agreement (the “Receivables Purchase Agreement”) with Change
Capital Holdings I, LLC (the “Purchaser”).
Pursuant
to the Receivables Purchase Agreement, the Company and its Subsidiaries agreed to sell to the Purchaser certain future accounts
receivable owed them (the “Purchased Receivables”) in exchange for $225,000 in cash (the “Purchase Price”)
and the Purchaser agreed to receive in equal weekly instalments over the course of 13 months an amount of approximately $283,500
(the “Specified Amount”), which amount includes the amount of the Purchased Receivables and the fees payable by the
Company under the Receivables Purchase Agreement. As long as no default has occurred under the Receivables Purchase Agreement,
the Company has the right to pay the remaining balance of the Specified Amount to the Purchaser prior to the due date at a total
cost of 3% of the Purchase Price per month.
Pursuant
to the Receivables Purchase Agreement, the Company and the Subsidiaries also granted to the Purchaser a security interest in all
their assets now owned or acquired in the future to the extent and in the amount of the Purchased Receivables.
The Receivables Purchase
Agreement contains customary representations and warranties of the Company and its Subsidiaries for a transaction of this type.
The Receivables Purchase Agreement also contains customary covenants, including, among other things, the covenants precluding the
Company and/or its Subsidiaries from entering into any transactions resulting in a change of control and selling or encumbering
any assets that form part of the collateral under the Receivables Purchase Agreement, in each case without obtaining the prior
written consent of the Purchaser.
The foregoing description
of the Receivables Purchase Agreement and the transactions contemplated thereby does not purport to be complete and is qualified
in its entirety by reference to the full text of the Receivables Purchase Agreement, a copy of which will be filed as an exhibit
to the Company’s next periodic report.
Item 2.03. Creation
of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
To the extent required
by Item 2.03, the information contained in Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
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 thereunto duly authorized.
Dated: December 9, 2019
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RECRUITER.COM GROUP, INC.
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By:
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/s/ Miles Jennings
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Miles Jennings
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Chief Executive Officer
(Principal Executive Officer)
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