Current Report Filing (8-k)
December 23 2019 - 1:48PM
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
23, 2019 (December 11, 2019)
ALR TECHNOLOGIES
INC.
(Exact name
of registrant as specified in its charter)
NEVADA
(State or
other jurisdiction of incorporation)
000-30414
(Commission
File No.)
7400 Beaufont
Springs Drive
Suite 300
Richmond,
Virginia 23225
(Address
of principal executive offices) (Zip Code)
(804) 554-3500
(Registrant's
telephone number, including area code)
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):
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Written communications pursuant
to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12
under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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ITEM
1.01
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ENTRY
INTO A MATERIAL DEFINITIVE AGREEMENT.
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ITEM
2.03
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CREATION
OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT
OF A REGISTRANT.
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On
December 11, 2019, ALR Technologies Inc. (“ALRT” or the “Company”) and Mr. Sidney Chan agreed to amend
the line of credit provided by Mr. Chan to the Company to increase the borrowing limit of the line of credit by $1,800,000, from
$8,500,000 to $10,300,000. In connection with providing the increase in the borrowing limit of the line of credit, the Company
will grant Mr. Chan the option to acquire 120,000,000 shares of common stock at a price of $0.015 per share for a term of five
years.
Mr.
Chan and the Company had previously entered into a credit agreement on March 6, 2011, which was subsequently amended by amending
agreements dated October 24, 2011, June 15, 2012, December 28, 2012, April 1, 2014, May 29, 2015 and July 1, 2016 whereby Mr.
Chan agreed to make available to the Company a credit line equal to an aggregate of $8,500,000 for the Company’s operations.
Under the terms of the arrangement, the amount borrowed by the Company bears simple interest at a rate of 1% per month. The amount
borrowed is secured by a general security agreement over the assets of the Company and is due on demand. As at September 30, 2019,
the Company had fully drawn down the $8,500,000 borrowing limit and had been advanced additional funds of $1,044,623.
The
line of credit will continue to bear interest of twelve (12) percent per annum on amounts borrowed and will continue to be secured
by a general security agreement. Advances totaling approximately $1,200,000 provided by Mr. Chan to the Company in excess of the
previous borrowing limit of $8,500,000 will be incorporated as advances under this new amended agreement and will bear interest
from the date the amount was received by the Company. The remaining amounts available under the line of credit will be used to
fund operations, working capital and general corporate purposes.
The
amending agreement has not yet been executed. The Company and Mr. Chan are working to formalize the agreement under terms and
conditions that customary of a borrowing arrangement of this nature.
Mr.
Chan is the Chairman of the Board of Directors and the Chief Executive Officer of the Company.
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.
Dated this
23rd day of December 2019.
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ALR TECHNOLOGIES INC.
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BY:
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SIDNEY
CHAN
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Sidney Chan
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Chief Executive Officer
and
Chairman of the Board of
Directors
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