Current Report Filing (8-k)
February 25 2020 - 4:35PM
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): February 20,
2020
AMERICAN BIO MEDICA CORPORATION
(Exact
name of registrant as specified in its charter)
New
York
|
0-28666
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14-1702188
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(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification Number)
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122 Smith Road,
Kinderhook, NY
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12106
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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: 518-758-8158
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):
☐ 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:
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
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ABMC
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Over-the-counter-Pink
Sheets
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Indicate by check mark whether the registrant is an emerging growth
company as defined 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 check mark 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
PRIVATE PLACEMENT
On
February 20, 2020, American Bio Medica Corporation (the
“Company”) entered into a Securities Purchase Agreement
(the “Purchase Agreement”) with Chaim Davis (the
Chairman of our Board of Directors) and certain other accredited
investors (the “Investors”), pursuant to which the
Company has agreed to issue and sell to the Investors in a private
placement (the “Private Placement”), 2,842,857 Units
(the “Units”).
Each
Unit consists of one (1) share of the Company’s common stock,
par value $0.01 per share (“Common Share”), at a price
per Unit of $0.07 (the “Purchase Price”) for aggregate
gross proceeds of approximately $199,000. The Company received net
proceeds of $199,000 from the Private Placement as expenses related
to the Private Placement were minimal. The Company did not utilize
a placement agent for the Private Placement. The company intends to
use the net proceeds for working capital and general corporate
purposes.
The
Company does not intend to register the Units issued under the
Private Placement; rather the Units issued will be subject to the
holding period requirements and other conditions of Rule
144.
The
Purchase Agreement contains customary representations, warranties
and covenants made solely for the benefit of the parties to the
Purchase Agreement. The Purchase Agreement is incorporated herein
by reference, but only to provide information regarding the terms
of the Purchase Agreement and not to provide any other factual
information regarding the Company or its business, and should be
read in conjunction with the disclosures in the Company’s
periodic reports and other filings with the SEC. Although our
Chairman of the Board is an investor in the Private Placement, the
pricing of the Units was determined by the non-affiliate
investors.
The
foregoing description of the material terms of the Purchase
Agreement is qualified in its entirety by reference to the full
text of the Purchase Agreement, which is filed as Exhibit 4.27 to
this Current Report on Form 8-K and incorporated herein by
reference.
CHEROKEE FINANCIAL LLC LOAN EXTENSIONS
On February 24,
2020 (the “Closing Date”), American Bio Medica
Corporation (the “Company”) completed a transaction
related to a one-year Extension Agreement dated February 14, 2020
(the “Extension Agreement”) with Cherokee Financial,
LLC (“Cherokee”) under which Cherokee has extended the
due date of the Company’s credit facilities (a $900,000
(mortgage) Term Note and a $200,000 2019 Term Loan) to February 15,
2021. No terms of either facility were changed under the Extension
Agreement. For consideration of the Extension Agreement, the
Company agreed to issue 1.5% of the $200,000 principal, or $3,000,
in 42,857 restricted shares of the Company’s common stock to
Cherokee and, 2% of the $900,000 principal, or $18,000, in 257,143
restricted shares of the Company’s common stock to Cherokee
on behalf of their investors.
The
Company also agreed to pay Cherokee’s legal fees in the
amount of $1,000.
Item
3.02
Unregistered
Sales of Equity Securities
The
information set forth above under Private Placement in Item 1.01 is
hereby incorporated by reference into this Item 3.02. The issuance
of the Common Shares shall be made pursuant to Section 4(2) of the
Securities Act of 1933, as amended, and the rules promulgated
thereunder, to accredited investors.
Item
9.01
Financial
Statement and Exhibits
(d) Exhibits
4.27 Form
of Securities Purchase Agreement
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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AMERICAN BIO MEDICA
CORPORATION (Registrant)
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Date:
February 25,
2020
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By:
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/s/ Melissa A.
Waterhouse
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Melissa A.
Waterhouse
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Chief Executive
Officer (Principal Executive Officer)
Principal Financial
Officer
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