Attached files
| file | filename |
|---|---|
| EX-10.2 - EXHIBIT 10.2 - JANEL CORP | v356696_ex10-2.htm |
| EX-10.1 - EXHIBIT 10.1 - JANEL CORP | v356696_ex10-1.htm |
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): September 30, 2013
JANEL WORLD TRADE, LTD.
(Exact name of registrant as specified in its charter)
| Nevada | 333-60608 | 86-1005291 |
| (State or Other Jurisdiction | (Commission File Number) | (IRS Employer |
| of Incorporation) | Identification No.) |
150-14 132nd Avenue, Jamaica, New York 11434
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code: (718) 527-3800
Inapplicable
(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))
INFORMATION TO BE INCLUDED IN THE REPORT
| Item 1.01. | Entry into a Material Definitive Agreement. |
On September 30, 2013, the Registrant extended the term of its Janel Group of New York subsidiary’s $2.5 million (limited to the borrowing base) revolving line of credit agreement (the “Credit Facility”) with Community National Bank (“CNB”) from September 30, 2013 to January 31, 2014. As part of the extension, CNB (i) reduced the Credit Facility to $1,731,335.54 (the current amount of borrowings outstanding), (ii) requires that 80% of the collections on eligible (under the borrowing base) accounts receivable from the Registrant’s former Hillside, New Jersey freight forwarding and logistics operations which, as previously reported, the Registrant sold on August 30, 2013 (the “NJ Collections”), be used to pay down borrowings under the Credit Facility within 10 days of collection, and (iii) will not allow any additional borrowings during the extension period. All other terms of the CNB credit facility remained unchanged.
On September 30, 2013, the company repaid $300,000 to CNB, reducing the amount of borrowings outstanding under the Credit Facility to $1,431,335.54. This repayment was a result of NJ Collections during the month of September.
| Item 2.03. | Creation of Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of the Registrant. |
The information required by this Item is described in Item 1.01 above.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibits are filed herewith:
Exhibit No.
| 10.1 | Promissory Note dated September 30, 2013 between Registrant’s subsidiary, The Janel Group of New York, Inc., payable to Community National Bank |
| 10.2 | Business Loan Agreement dated September 30, 2013 between Registrant’s subsidiary, The Janel Group of New York, Inc. and Community National Bank |
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.
| JANEL WORLD TRADE, LTD. | ||
| (Registrant) | ||
| Date: October 3, 2013 | By: | /s/ William J. Lally |
| William
J. Lally Chief Executive Officer | ||