- Current report filing (8-K)
December 31 2008 - 3:33PM
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
December 30, 2008
Date of Report (Date of earliest event reported)
HESKA CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware
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000-22427
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77-0192527
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(State or other jurisdiction of
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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incorporation)
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3760 Rocky Mountain Avenue
Loveland, Colorado 80538
(Address of principal executive offices, including zip code)
(970) 493-7272
(Registrants telephone number, including area code)
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):
o
Written communication
pursuant to Rule 425 under the Securities Act (17 CFR 203.425)
o
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
Item
1.01.
Entry
into a Material Definitive Agreement.
On December 30,
2008, Heska Corporation (the Company) amended its credit and security
agreement with Wells Fargo Bank, National Association (Wells Fargo). The amended agreement adjusts and sets the
Minimum Capital, Minimum Net Income and Minimum Capital Expenditures financial
covenants, among others, increases the interest rate and Spread charged to the
Company to the Prime Rate plus 2.5% retroactive to December 1, 2008, increases
the Prepayment Factor to 1.0% and imposes a $50,000 waiver and amendment fee in
exchange for Wells Fargos waiver of a financial covenant default by the
Company.
Item
2.05.
Costs
Associated with Exit or Disposal Activities.
On December 30,
2008, Heska Corporation finalized a plan to reduce its staffing levels at its
Loveland, Colorado facility and Des Moines, Iowa facility by a certain number
of employees and by identified positions.
In the absence of any pre-existing agreements between the designated
employees and the Company, severance benefits will be determined under The
Heska Corporation Severance Plan (the Plan).
Under the Plan, employees terminated will receive an amount equal to
four weeks of base salary plus for each full or partial year of service with
the Company, one week of base salary with a maximum severance amount capped at
13 weeks of base salary per employee.
Terminated employees will also receive three months of the Companys
portion of premium payments for group health and dental insurance for coverage
in effect immediately prior to the termination date. While the Company has not
yet determined the estimated costs of this action, the Company anticipates the
costs will be less than $1 million.
This action is the result
of certain economic factors within the Companys industry. Affected employees will be notified in January 2009
and all activities associated with this action are expected to be completed
within 60 days.
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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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HESKA CORPORATION
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a Delaware corporation
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Dated: December 31, 2008
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By:
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/s/ Jason A. Napolitano
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Jason A. Napolitano
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Executive Vice President and Chief Financial
Officer
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