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): July 13, 2021  

SIGMATRON INTERNATIONAL, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware 000-23248 36-3918470
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number)

 

2201 Landmeier Road, Elk Grove Village, Illinois 60007
(Address of Principal Executive Offices) (Zip Code)

(847) 956-8000
(Registrant's 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:

  [   ]   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 Trading Symbol Name of each exchange on which registered
Common Stock $0.01 par value per share SGMA The NASDAQ Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 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 1.02. Termination of a Material Definitive Agreement.

            As previously reported in the Current Report on Form 8-K filed by SigmaTron International, Inc. (the “Company”) on April 24, 2020, on April 23, 2020, the Company received an unsecured loan in the principal amount of $6,282,973 (the “Loan”) under the Small Business Administration Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).  The Loan was evidenced by the U.S. Bank SBA Payroll Protection Loan agreement (the “Agreement”) with a note dated April 23, 2020, made in favor of U.S. Bank National Association.

Under the terms of the Agreement, interest accrued on the unpaid principal balance at the rate of 1.00% per year.  The note constituting a part of the Agreement had a term of two years, although the first payment was deferred for the first seven months.  The Agreement also contained loan forgiveness provisions if certain conditions were met, including the use of the loan proceeds for eligible expenses, which may result in all or a portion of the principal of the Loan being forgiven and reduced and the Loan being re-amortized following the deferral period for the Loan.  The note under the Agreement was prepayable in part or in full, at any time, without penalty.  

On July 9, 2021, the Company received notification from the Small Business Administration that the Small Business Administration approved the Company’s Loan forgiveness application for the entire Loan balance plus accrued interest.  The accounting for the forgiveness will be reflected in the Company’s first quarter financial statements for fiscal year 2022. 

Item 8.01. Other Events.

            On July 13, 2021, the Company issued a press release relating to the forgiveness of the Loan under the PPP.  A copy of the press release is attached hereto as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits.

            (d)       Exhibits

Exhibit No.                Description__________________________________________________

Exhibit 99.1                SigmaTron International, Inc. press release dated July 13, 2021.

SIGNATURE

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.

  SIGMATRON INTERNATIONAL, INC.
     
   
Date: July 13, 2021 By:  /s/ Gary R. Fairhead        
    Gary R. Fairhead
    President and Chief Executive Officer
   

EXHIBIT 99.1

SigmaTron International, Inc. Reports Full Forgiveness of $6.3 Million Loan Under SBA Payroll Protection Program

ELK GROVE VILLAGE, Ill., July 13, 2021 (GLOBE NEWSWIRE) -- SigmaTron International, Inc. (NASDAQ: SGMA), an electronic manufacturing services company, today announced that it received full forgiveness of its Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) loan in the amount of approximately $6.3 million, which it had received pursuant to the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) on April 23, 2020 and which was reported in a press release the same day. The Company was notified of the forgiveness on Friday, July 9, 2021 and it covers all principal and accrued interest. The accounting for the forgiveness will be reflected in the Company’s first quarter financial statements for fiscal year 2022.

Gary R. Fairhead, President, CEO and Chairman, said, “We believed that the PPP loan would be essential to support our U.S. employees and factories as they worked through the pandemic and the volatile economy it had created and, indeed, that was the case. We remain thankful for the government’s foresight in creating this Program.”     

Headquartered in Elk Grove Village, IL, SigmaTron International, Inc. is an electronic manufacturing services company that provides printed circuit board assemblies and completely assembled electronic products. SigmaTron International, Inc. operates manufacturing facilities in Elk Grove Village, Illinois; Acuna, Chihuahua, and Tijuana Mexico; Union City, California; Suzhou, China, and Ho Chi Minh City, Vietnam. SigmaTron International, Inc. maintains engineering and materials sourcing offices in Elgin, Illinois and Taipei, Taiwan.  

Note: This press release contains forward-looking statements. Words such as “continue,” “anticipate,” “will,” “expect,” “believe,” “plan,” and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of the Company. Because these forward-looking statements involve risks and uncertainties, the Company’s plans, actions and actual results could differ materially. Such statements should be evaluated in the context of the direct and indirect risks and uncertainties inherent in the Company’s business including, but not necessarily limited to, the Company’s continued dependence on certain significant customers; the continued market acceptance of products and services offered by the Company and its customers; pricing pressures from the Company’s customers, suppliers and the market; the activities of competitors, some of which may have greater financial or other resources than the Company; the variability of the Company’s operating results; the results of long-lived assets impairment testing; the ability to achieve the expected benefits of acquisitions as well as the expenses of acquisitions; the collection of aged account receivables; the variability of the Company’s customers’ requirements; the availability and cost of necessary components and materials; the ability of the Company and its customers to keep current with technological changes within its industries; regulatory compliance, including conflict minerals; the continued availability and sufficiency of the Company’s credit arrangements, including the phase-out of LIBOR; the ability to meet the Company’s financial and restrictive covenants under its loan agreements; changes in U.S., Mexican, Chinese, Vietnamese or Taiwanese regulations affecting the Company’s business; the turmoil in the global economy and financial markets; the spread of COVID-19 and variants which has threatened the Company’s financial stability by causing a decrease in consumer spending, has negatively affected global economies, caused a disruption to the Company’s global supply chain, and caused the Company to incur government mandated closures of factories or reduced production tied to lower staffing; the stability of the U.S., Mexican, Chinese, Vietnamese and Taiwanese economic, labor and political systems and conditions; currency exchange fluctuations; and the ability of the Company to manage its growth. These and other factors which may affect the Company’s future business and results of operations are identified throughout the Company’s Annual Report on Form 10-K, and as risk factors, may be detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These statements speak as of the date of such filings, and the Company undertakes no obligation to update such statements in light of future events or otherwise unless otherwise required by law.

For Further Information Contact:
SigmaTron International, Inc.
Linda K. Frauendorfer
1-800-700-9095