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 4, 2018 (November 29, 2018)
Majesco
(Exact Name of Registrant as Specified in its Charter)
California | 001-37466 | 77-0309142 |
(State or Other Jurisdiction
of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
412 Mount Kemble Ave, Suite 110C, Morristown, NJ 07960
(Address of Principal Executive Offices)(Zip Code)
Registrant's telephone number, including area code (973) 461-5200
N/A
(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 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 x
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. |
On November 29, 2018, Majesco amended its previously disclosed Receivable Purchase Agreement, dated January 13, 2017 (the “Agreement”) with HSBC Bank USA, National Association (“HSBC”), to increase its limit to $15.0 million until March 29, 2019, and $10.0 million thereafter. Under the Agreement, HSBC may advance funds against certain eligible accounts receivable at an agreed advance rate. The facility bears interest at two (2%) per cent plus the ninety (90) day LIBOR rate. HSBC will receive an arrangement fee of $10,000 in connection with this amendment. Other terms of the Agreement remain unchanged. The amendment will provide additional liquidity to Majesco for mergers and acquisitions and other general corporate purposes. HSBC is also a lender under Majesco’s previously disclosed term loan facility dated March 23, 2016.
The foregoing summary of the amendment to the Agreement does not purport to be complete and is qualified in its entirety by reference to the amendment to the Agreement attached hereto as Exhibit 10.1 and incorporated herein by reference.
ITEM 2.03. | CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT. |
Reference is made to the disclosure under Item 1.01 above which is hereby incorporated in this Item 2.03 by reference.
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Majesco | |||
By: | /s/ Farid Kazani | ||
Farid Kazani, Chief Financial Officer |
Date: December 4, 2018
EXHIBIT INDEX
Exhibit 10.1
AMENDMENT TO THE RECEIVABLES PURCHASE AGREEMENT
THIS AMENDMENT TO THE RECEIVABLES PURCHASE AGREEMENT, the Schedules and the Standard Terms and Conditions (this “ Amendment ”) dated as of November 29, 2018, by and between Majesco , a California corporation with its principal place of business located at 412 Mount Kemble Avenue, Suite 110C, Morristown, NJ 07960 (the “ Client ”), and HSBC BANK USA, NATIONAL ASSOCIATION , a national banking association with an office at 452 Fifth Avenue, New York, New York 10018 (the “ HSBC ”).
RECITALS
WHEREAS, the Client and HSBC are party to that certain Receivables Purchase Agreement, dated as of January 13, 2017 (as amended and as may be further amended, modified, supplemented, restated from time to time, the “ RPA ”), and
WHEREAS, the Client has requested that HSBC make certain amendments to the RPA and HSBC is willing, on the terms and subject to the conditions hereinafter set forth, to modify the RPA as set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby covenant and agree to be bound as follows:
Section 1. Capitalized Terms. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the RPA, as hereby amended, unless the context otherwise requires.
Section 2. Amendment. On the Amendment Effective Date (as defined below),
(a) “Facility Limit” in Section 3 of the Schedule to the RPA shall be deleted in its entirety and replaced with the following:
“Facility Limit $15,000,000 until March 29, 2019 (the “Facility Increase Termination Date”), and thereafter $10,000,000. Any Advances outstanding in an amount greater than $10,000,000 on the Facility Increase Termination Date shall be repaid by the Client to HSBC so that the aggregate amount of Advances outstanding does not exceed $10 000,000 on such date.
Section 3. Effectiveness of This Amendment . This Amendment shall not be effective until HSBC receives a counterpart of this Amendment executed by the Client and HSBC, and any such other documents as HSBC may reasonably request (the “ Amendment Effective Date ”).
In consideration for the increase in the Facility Limit in the RPA and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Client hereby agrees to pay an arrangement fee of $10,000 to HSBC on the Amendment Effective Date in immediately available funds.
RESTRICTED
Section 4. Representations . The Client represents and warrants to HSBC as follows:
(a) each representation and warranty made or deemed made by the Client in the RPA is true and correct as of the date hereof, except to the extent that a representation or warranty expressly relates solely to an earlier date (in which case such representation or warranty was true and accurate on and as of such earlier date);
(b) no default or Termination Event has occurred and is continuing as of the date hereof;
(c) the execution, delivery and performance by the Client of this Amendment, as amended hereby, (i) are within the Client’s corporate or other organizational powers, (ii) have been duly authorized by all necessary corporate or other organizational action; (iii) do not contravene (A) the Client’s organizational documents, (B) any law, rule or regulation applicable to the Client, (C) any contractual restriction binding on or affecting the Client or its property, or (D) any order, writ, judgment, award, injunction or decree binding on or affecting the Client or its property.
(d) the Amendment and the RPA are legal, valid and binding obligations of the Client, enforceable against the Client in accordance with their terms, except as limited by bankruptcy, insolvency, moratorium, fraudulent conveyance or other laws relating to the enforcement of creditors’ rights generally and general principles of equity (regardless of whether enforcement is sought at equity or law).
Section 5. Reaffirmation; Effect of Amendment. The Client acknowledges and reaffirms that the RPA, as hereby amended, is hereby ratified and confirmed in all respects and all terms, conditions, and provisions of the RPA, except as amended by this Amendment, shall remain unmodified and in full force and effect. All references in any document or instrument to the RPA are hereby amended to refer to the RPA as amended by this Amendment. If any part of this Amendment is for any reason found to be unenforceable, all other portions of it shall nevertheless remain enforceable. The RPA and any and all other documents heretofore, now or hereafter executed and delivered pursuant to the terms of the RPA are hereby amended so that any reference to the RPA shall mean a reference to the RPA amended by this Amendment.
Section 6. Governing Law . This Amendment shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflict of laws principles.
Section 7. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
Section 8. Counterparts . This Amendment may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by fax or by email shall be effective as delivery of a manually executed counterpart of this Amendment.
Section 9. ENTIRETY . THIS AMENDMENT, THE RPA, AND ANY OTHER RELATED DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND SUPERSEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE SUBJECT MATTER HEREOF. THESE DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
Section 10. Successors. This Amendment binds and inures to the benefit of the parties hereto and their respective successors and permitted assigns.
RESTRICTED
[SIGNATURE PAGE FOLLOWS]
RESTRICTED
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first above written.
MAJESCO, as Client | |||
By | /s/ Ketan Mehta | ||
Name: Ketan Mehta | |||
Title: Chairman | |||
By | |||
Name: | |||
Title: | |||
HSBC BANK USA, NATIONAL ASSOCIATION | |||
By | /s/ Marcus S. Jones | ||
Name: Marcus S. Jones | |||
Title: Vice President |
RESTRICTED - Signature page to Amendment to the Receivables Purchase Agreement