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): March 1, 2016

 

SITO MOBILE, LTD.

(Exact name of registrant as specified in its charter)

 

Delaware   000-53744   13-4122844
(State or other jurisdiction
of Incorporation)
  (Commission File Number)  

(I.R.S. Employer

Identification No.)

 

The Newport Corporate Center, 100 Town Square Place, Suite 204, Jersey City, NJ 07301

(Address of principal executive offices) (Zip Code)

 

(201) 275-0555

(Registrant’s telephone number, including area code)

 

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))

 

 

 

 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

On March 1, 2016, SITO Mobile, Ltd. (the “Company”) entered into Amendment No.1 (the “Amendment”) to that certain Revenue Sharing and Note Purchase Agreement, by and among the Company, SITO Mobile Solutions, Inc., SITO Mobile R&D IP, LLC, Fortress Credit Co LLC, and the Purchasers signatory thereto, dated as of October 3, 2014 (the “Agreement”). Pursuant to the terms of the Amendment, principal payment on the Notes issued pursuant to the Agreement shall be reduced from $333,333 to $175,000 for the period commencing on the last business day of February 2016 through the last business day of February 2017 and from $333,333 to $300,000 for the period commencing on the last business day of March 2017 to the last day of business on February 2018, with the final payment on the last business day on March 2018 increased to repay the remaining principal in full. In consideration for the Amendment, the Company agreed to pay a restructuring fee of $100,000 and issue 200,000 shares of its common stock to the Purchasers.

 

The foregoing description is a summary only, does not purport to set forth the complete terms of the Amendment, and is qualified in its entirety by reference to the Amendment filed as an exhibit to this Current Report.

 

On March, 2, 2016, the Company released a press release with respect to the foregoing, a copy of which is attached hereto as Exhibit 99.1.

 

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

 

On March 1, 2016, the Company filed a Certificate of Amendment to its Certificate of Incorporation to reduce the number of authorized shares of common stock from 300,000,000 to 100,000,000 shares.

 

A copy of the Certificate of Amendment, as filed with the Secretary of State of the State of Delaware, is attached hereto as Exhibit 3.1 and is incorporated herein by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

(c) Exhibits

 

3.1 Certificate of Amendment of the Certificate of Incorporation of SITO Mobile, Ltd.
   
10.1 Amendment No.1 (the “Amendment”) to that certain Revenue Sharing and Note Purchase Agreement, by and amount the Company, SITO Mobile Solutions, Inc., SITO Mobile R&D IP, LLC, Fortress Credit Co LLC, and the Purchasers signatory thereto.
   
99.1 Press Release, dated as of March 2, 2016.

  

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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.

 

Date: March 3, 2016

 

  SITO MOBILE, LTD.
     
  By: /s/ Jerry Hug
  Name: Jerry Hug
  Title:    Chief Executive Officer

 

 

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Exhibit 3.1

 

  Delaware Page 1
  The First State  

 

I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE CERTIFICATE OF AMENDMENT OF “SITO MOBILE, LTD.”, FILED IN THIS OFFICE ON THE FIRST DAY OF MARCH, A.D. 2016, AT 12:17 O`CLOCK P.M.

 

A FILED COPY OF THIS CERTIFICATE HAS BEEN FORWARDED TO THE NEW CASTLE COUNTY RECORDER OF DEEDS.

 

    /s/ Jeffrey W. Bullock
    Jeffrey W. Bullock, Secretary of State

3236663 8100

SR# 20161385642

Authentication: 201911510

Date: 03-01-16

 

You may verify this certificate online at corp.delaware.gov/authver.shtml

 

  

 

 

 

 

 

 

 

CERTIFICATE OF AMENDMENT

 

TO THE

 

CERTIFICATE OF INCORPORATION

 

OF

 

SITO MOBILE, LTD.

State of Delaware
Secretary of State
Division of Corporations
Delivered 12:17 PM 03/01/2016
FILED 12:17 PM 03/01/2016
SR 20161385642 - File Number 3236663

 

SITO Mobile, Ltd. (the "Corporation"), organized and existing under and by virtue of the General Corporation Law of the State of Delaware does hereby certify:

 

FIRST: that the Certificate of Incorporation of the Corporation be amended by changing the Article thereof numbered "FOURTH" so that, as amended, said Article shall be and read as follows:

 

FOURTH: The total number of shares of stock which the corporation shall have authority to issue is 105,000,000 of which 100,000,000 shares are designated as common stock, par value $0.001 per share, and 5,000,000 shares are designated as preferred stock, par value $0.0001 per share, the rights, privileges and preferences of which may be designated as provided herein.

 

The preferred stock may be issued from time to time in one or more series. The Board of Directors is hereby expressly authorized to provide by resolution or resolutions duly adopted prior to issuance, for the creation of such series and to fix the designation and the powers, preferences, rights, qualifications, limitations and restrictions relating to the shares of each such series. The authority of the Board of Directors with respect to each series of preferred stock shall include, but not be limited to, determining the following:

 

(a) the designation of such series, the number of shares to constitute such series and the stated value thereof if different from the par value thereof;

 

(b) whether the shares of such series shall have voting rights, in addition to any voting rights provided by law, and, if so, the term of such voting rights, which may be general or limited;

 

(c) the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if so, from what dates, the conditions and dates upon which such dividends shall be payable, and the preference or relation which such dividends shall bear to the dividends payable on any shares of stock of any other class or any other series of preferred stock;

  

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(d) whether the shares of such series shall be subject to redemption by the corporation, and, if so, the times, prices and other conditions of such redemption;

 

(e) the amount or amounts payable upon shares of such series upon, and the rights of the holders of such series in, the voluntary or involuntary liquidation, dissolution or winding up, or upon any distribution of the assets, of the corporation;

 

(f) whether the shares of such series shall be subject to the operation of a retirement or sinking fund and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied to the purchase or redemption of the shares of such series for retirement or other corporation purposes and the terms and provisions relating to the operation thereof;

 

(g) whether the shares of such series shall be convertible into, or exchangeable for, shares of stock of any other class or any other series of preferred stock or any other securities and, if so, the price or prices or the rate or rates of conversion or exchange and the method, if any, of adjusting the same, and any other terms and conditions of conversion or exchange;

 

(h) the conditions or restrictions, if any, upon the creation of indebtedness of the corporation or upon the issue of any additional stock, including additional shares of such series or of any other series of preferred stock or of any other class; and

 

(i) any other powers, preferences and relative, participating, options and other special rights, and any qualifications, limitations and restrictions, thereof.

 

The powers, preferences and relative, participating options and other special rights of each series of preferred stock, and the qualifications, limitations or restrictions thereof, if any, may differ from those of any and all other series at any time outstanding. All shares of any one series of preferred stock shall be identical in all respects with all other shares of such series, except that shares of any one series issued at different times may differ as to the dates from which dividends thereof shall be cumulative.

 

SECOND: The foregoing amendment has been duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of the State of Delaware by the vote of a majority of each class of outstanding stock of the Corporation entitled to vote thereon.

 

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IN WITNESS WHEREOF, the Corporation has caused this Certificate of Amendment to the Corporation's Certificate of Incorporation to be signed this 1 st day of March 2016.

 

  SITO MOBILE, LTD.
     
  By: /s/ Kurt Streams
  Name: Kurt Streams
  Title:  Chief Financial Officer

 

 

 

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 Exhibit 10.1

 

Execution Copy

 

FIRST AMENDMENT TO

REVENUE SHARING AND NOTE PURCHASE AGREEMENT

 

This FIRST AMENDMENT TO REVENUE SHARING AND NOTE PURCHASE AGREEMENT (this “ Amendment ”) is dated as of March 1, 2016 among SITO Mobile, Ltd., a Delaware corporation (“ Parent ”), SITO Mobile Solutions, Inc., a Nevada corporation (“ Licensee ”) and SITO Mobile R&D IP, LLC, a Delaware limited liability company (“ Owner ”, and, collectively, together with Parent and Licensee, the “ Company ”), Fortress Credit Co LLC as collateral agent (the “ Collateral Agent ”) and the Purchasers and amends that certain Revenue Sharing and Note Purchase Agreement between the Company, the Collateral Agent and the Purchasers as of October 3, 2014 (such Agreement, as amended hereby and as may be further amended, supplemented or otherwise modified and in effect from time to time, the “ Agreement ”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Agreement.

 

WHEREAS, the parties have agreed to restructure the monthly amortization payments in exchange for a $100,000 structuring fee and 200,000 shares of common stock of the Parent.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

Section 1. Amendment . Subject to the effectiveness of this Amendment, the Agreement shall be amended by adding the following proviso to the end of Section 2.2.4.3:

“; provided , that notwithstanding the foregoing, the amount of each monthly amortization payment commencing with the payment due on the last Business Day of February, 2016 through the payment due on the last Business Day of February 2017, shall be One Hundred Seventy Five Thousand Dollars ($175,000), and shall be Three Hundred Thousand Dollars ($300,000) per month thereafter, until the last Business Day of the month preceding the Maturity Date. For the avoidance of doubt, the entire remaining principal balance of the Notes shall be due and payable in full on the Maturity Date.”

 

Section 2. Conditions to Effectiveness . The effectiveness of this Amendment is subject to the satisfaction of the conditions set forth in this Section 2 :

 

 2.01. Restructuring Fee . The Company agrees to promptly pay to the Purchasers a $100,000 structuring fee (out of which fee the Collateral Agent will pay its counsel fees and disbursements in connection with the Amendment) (such payment, the “ Restructuring Payment ”).

 

2.02. Equity Issuance . In consideration of the restructuring of the monthly amortization payments in accordance with Section 2.2.4.3, as amended by this Amendment, Parent hereby issues to the Purchaser, and the Purchaser hereby subscribes for, 200,000 shares of common stock, par value $0.001 per share, of Parent (the “ Shares ”), all of which Shares shall be duly authorized, validly issued, fully paid and nonassessable (such issuance, the “ Equity Issuance ”).

 

   

 

 

Section 3. Representations of Purchaser .

 

(a) Purchaser agrees that the Shares may only be disposed of in compliance with state and federal securities laws and, so long as such Shares are not disposed of pursuant to an effective registration statement or an available exemption from such registration, shall bear a legend in the following form:

 

THIS SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

(b) Purchaser covenants that it is, either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act of 1933, as amended (the “ Securities Act ”) or (ii) a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act of 1934.

 

(c) Purchaser is acquiring the Shares as principal for its own account and has no direct or indirect arrangement or understandings with any other Persons to distribute or regarding the distribution of such Shares in violation of the Securities Act or any applicable state securities law (this representation and warranty not limiting Purchaser’s right to sell the Shares in compliance with applicable federal and state securities laws).

 

(d) Purchaser represents that it has been afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the Company concerning the Company and the terms and conditions of the issuance of Shares.

 

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Section 4. Representations of Parent . Parent hereby makes the following representations, warranties and acknowledgments to Purchaser:

 

(a) Authorization; Enforcement . Parent has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Amendment, including the Restructuring Payment and the Equity Issuance, and otherwise to carry out its obligations hereunder. The execution and delivery of this Amendment by Parent and the consummation by it of the transactions contemplated hereby, including the Restructuring Payment and the Equity Issuance, have been duly authorized by all necessary action on the part of Parent and no further action is required by Parent, its board of directors or Parent’s stockholders in connection therewith. This Amendment has been (or upon delivery will have been) duly executed by Parent and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of Parent enforceable against Parent in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b) No Conflicts . The execution, delivery and performance by Parent of this Amendment, the consummation by Parent of the Restructuring Payment, the Equity Issuance and the other transactions contemplated hereby, do not and will not (i) conflict with or violate any provision of Parent’s or any of Parent’s subsidiaries’ certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien upon any of the properties or assets of Parent or any subsidiary of Parent, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing Parent debt or otherwise) or other understanding to which Parent or any subsidiary of Parent is a party or by which any property or asset of Parent or any subsidiary of Parent is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which Parent or any subsidiary of Parent is subject (including federal and state securities laws and regulations), or by which any property or asset of Parent or any subsidiary of Parent is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a material adverse effect on Parent’s or any of Parent’s subsidiaries’ business or operations.

 

(c) Filings, Consents and Approvals . Parent is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by Parent of this Amendment, other than such filings as are required to be made under applicable state securities laws.

 

(d) Equity Issuance . The Shares are duly authorized and, when issued in accordance with this Amendment, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens imposed by Parent. Parent has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Amendment.

 

Section 5. Covenants Relating to Rule 144 . Parent shall use its reasonable best efforts to file in a timely manner any reports required to be filed by it under the Securities Act and the Securities Exchange Act of 1934, as amended, and to take such further action as any of the Purchaser may reasonably request, all to the extent required from time to time to enable the Purchaser to sell the Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 promulgated under the Securities Act, as such rule may be amended from time to time (“ Rule 144 ”). Parent shall, in connection with any sale, transfer or other disposition by any Purchaser of any Shares pursuant to Rule 144, promptly cause the timely preparation and delivery of certificates representing the Shares to be sold and the removal of any legend restricting transfers of the Shares, and enable certificates for such Shares to be issued (or, in the case of book-entry shares, make or cause to be made appropriate notifications on the books of Parent's transfer agent) for such number of shares and registered in such names as the Purchaser may reasonably request and to provide a customary opinion of counsel required by Parent's transfer agent.

 

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Section 6. Miscellaneous . Except as specifically amended or waived above, the Agreement and the other Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Collateral Agent or any Purchaser under the Agreement or any Document, nor constitute a waiver of any provision of the Agreement or any Document. This Amendment is a Document for all purposes of the Agreement. This Amendment may be executed in any number of counterparts, and by different parties hereto on separate counterpart signature pages, and all such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of a counterpart signature page by facsimile transmission or by e-mail transmission of an Adobe portable document format file (also known as a “ PDF ” file) shall be effective as delivery of a manually executed counterpart signature page. Section headings used in this Amendment are for reference only and shall not affect the construction of this Amendment.

 

Section 7. Governing Law . This Amendment, and any issue, claim or proceeding arising out of or relating to this Amendment or the conduct of the parties hereto, whether now existing or hereafter arising and whether in contract, tort or otherwise, shall be governed by and construed in accordance with the laws of the State of New York.

 

[Signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

  Revenue Participant :
     
  CF DB EZ LLC
     
  By: /s/ Constantine M. Dakolias
  Name: Constantine M. Dakolias
  Title: President
     
  Note Purchasers :
     
  CF EZ LLC
     
  By: Drawbridge Special Opportunities Advisors LLC, its managing member
     
  By: /s/ Constantine M. Dakolias
  Name: Constantine M. Dakolias
  Title: President
     
  FORTRESS CREDIT OPPORTUNITIES V CLO LIMITED
     
  By: FCO V CLO CM LLC, its collateral manager
     
  By: /s/ Constantine M. Dakolias
  Name: Constantine M. Dakolias
  Title: President

 

[Signature Page to First Amendment to Revenue Sharing and Note Purchase Agreement]

 

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  Collateral Agent :
     
  Fortress Credit Co LLC
     
  By: /s/ Constantine M. Dakolias
  Name: Constantine M. Dakolias
  Title: President

 

  Company :
     
  SITO MOBILE, LTD.
     
  By: /s/ Jerry Hug
    Jerry Hug
  Title: CEO
     
  SITO MOBILE SOLUTIONS, INC.
     
  By: /s/ Jerry Hug
    Jerry Hug
  Title: President
     
  SITO MOBILE R&D IP, LLC
     
  By: /s/ Jerry Hug
    Jerry Hug
  Title: Authorized Manager

  

[Signature Page to First Amendment to Revenue Sharing and Note Purchase Agreement]

 

 

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Exhibit 99.1  

 

SITO MOBILE AMENDS DEBT AGREEMENT WITH FORTRESS

 

Amendment Defers $2.5 Million in Principal Payments Over Loan Term

 

JERSEY CITY, N.J., March 2, 2016 -- SITO Mobile Ltd. (SITO) (NASDAQ: SITO), a leading mobile engagement platform provider, announced today an amendment to its debt agreement with Fortress.

 

Highlights of the Terms of the Amendment:

 

New Payment Terms: Beginning with the payment due at the end of February 2016, monthly debt principal payments are $175,000 per month (reduced from $333,000 per month previously) payable each month through February 2017. At month-end March 2017, debt principal payments will become $300,000 per month until the loan maturity date of March 31, 2018, at which time the total remaining loan balance of $3.3 million will be due.
Principal Deferral: The total debt principal payment deferral for the loan term is $2.5 million.   
Consideration: In consideration of this agreement, SITO Mobile will pay Fortress $100,000 and 200,000 shares of restricted stock.

“Fortress is a committed and supportive equity and debt investor in SITO Mobile and has agreed to these more favorable payment terms in recognition of our strong revenue growth and positive outlook,” said Jerry Hug, SITO Mobile’s CEO. “The amendment’s near-term principal payment reductions offer SITO greater liquidity in the coming quarters as we continue to grow revenues and EBITDA.”

 

About SITO Mobile Ltd.

 

SITO Mobile provides a mobile engagement platform that enables brands to increase awareness, loyalty and ultimately sales. For more information visit www.sitomobile.com .

 

Forward-Looking Statements

 

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, our reliance on brand owners and wireless carriers, the possible need for additional capital as well other risks identified in our filings with the SEC. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

 

Contact:

 

Investor Relations:

Joseph Wilkinson

SVP Investor Relations

Joseph.Wilkinson@sitomobile.com

 

Media Relations:

Matthew Bretzius

FischTank Marketing and PR

matt@fischtankpr.com

SOURCE SITO Mobile

 

RELATED LINKS
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