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) April 10, 2017

 

Cosmos Holdings Inc.

(Exact name of registrant as specified in its charter)

 

Nevada

 

000-54436

 

27-0611758

(State or other jurisdiction
of incorporation)

 

(Commission
File Number)

 

(I.R.S. Employer
Identification No.)

 

141 West Jackson Blvd, Suite 4236, Chicago, Illinois

 

60604

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code (312) 536-3102

 

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:

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

 

 
 
 
 

ITEM 1.01 - ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

 

On April 10, 2017, Decahedron Ltd. (“Decahedron”), a wholly owned subsidiary of Cosmos Holdings Inc., a Nevada corporation (the “Company”) entered into a Trade Finance Facility Agreement (the “Decahedron Facility”) with Synthesis Structured Commodity Trade Finance Limited (the “Lender”). The Decahedron Facility provides the following material terms:

 

 

·

The Lender will provide Decahedron a facility of up to €2,750,000 secured against Decahedron’s receivables from the sale of branded and generic pharmaceutical sales.

 

 

 

 

·

The total facility will be calculated as 95% of the agreed upon value of Decahedron’s receivables.

 

 

 

 

·

The term of the Decahedron Facility will be for 12 months.

 

 

 

 

·

The obligations of Decahedron are guaranteed by the Company pursuant to a Cross Guarantee and Indemnity Agreement.

 

 

 

 

·

The Lender has the right to make payments directly to Decahedron’s suppliers.

 

 

 

 

·

The following fees should be paid in connection with the Decahedron Facility:

 

 

 

 

 

o

2% of the maximum principal amount as an origination fee.

 

 

 

 

 

 

o

A one percent (1%) monthly fee.

 

The Company is in the process of obtaining the required consent from Synthesis Peer-To Peer-Income Fund in connection with certain negative covenants of the Company and Decahedron that restrict the Company and/or its subsidiaries from incurring any additional indebtedness or encumbering their assets. There can be no assurance such consent will be obtained.

 

The foregoing description of the Decahedron Facility and relevant transaction agreements is only a summary, does not purport to be complete and is qualified in its entirety by reference to the full text of the agreements, which are attached hereto as Exhibits 10.1-10.4 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

 

See Item 1.01 above.

 

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

 

(d) Exhibits

 

10.1

Trade Finance Facility Offer Letter, dated as of April 10, 2017, by and between Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

 

10.2

Trade Finance Facility Agreement, dated as of April 10, 2017, by and between Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

 

10.3

Cross Guarantee and Indemnity Agreement, dated as of April 10, 2017, by and among Cosmos Holdings Inc., Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

 

10.4

Security Assignment of Receivables and other Contractual Rights, dated as of April 10, 2017, by and between Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 
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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

COSMOS HOLDINGS INC.

       

Date: April 14, 2017

By: /s/ Grigorios Siokas

 

 

Grigorios Siokas

 
   

Chief Executive Officer

 

 

 
3
 
 

 

EXHIBIT INDEX

 

Exhibit

Number

 

Description

 

 

 

10.1

Trade Finance Facility Offer Letter, dated as of April 10, 2017, by and between Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

 

10.2

Trade Finance Facility Agreement, dated as of April 10, 2017, by and between Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

 

10.3

Cross Guarantee and Indemnity Agreement, dated as of April 10, 2017, by and among Cosmos Holdings Inc., Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

 

10.4

Security Assignment of Receivables and other Contractual Rights, dated as of April 10, 2017, by and between Decahedron Ltd. and Synthesis Structured Commodity Trade Finance Limited.

 

 

4

 

EXHIBIT 10.1

 

 

 

 

 

 
1
 

 

 

 
2
 

 

 

 
3
 

 

 

 
4
 

 

 

 
5
 

 

 

 
6
 

 

 

 
7
 

 

 

 

 

8

 

EXHIBIT 10.2

 

 

 

 
1
 

 

 

 
2
 

 

 

 
3
 

 

 

 
4
 

 

 

 
5
 

 

 

 
6
 

 

 

 
7
 

 

 

 
8
 

 

 

 
9
 

 

 

 
10
 

 

 

 
11
 

 

 

 
12
 

 

 

 
13
 

 

 

 
14
 

 

 

 
15
 

 

 

 
16
 

 

 

 
17
 

 

 

 
18
 

 

 

 
19
 

 

 

 

20

 

EXHIBIT 10.3

 

 

 

 
1
 

 

 

 
2
 

 

 

 
3
 

 

 

 
4
 

 

 

 
5
 

 

 

 
6
 

 

 

 
7
 

 

 

 

 

8

 

EXHIBIT 10.4

 

 

 
1
 

 

 

 
2
 

 

 

 
3
 

 

 

 
4
 

 

 

 
5
 

 

 

 
6
 

 

 

 
7
 

 

 

 
8
 

 

 

 
9
 

 

 

 
10
 

 

 

 
11
 

 

 

 
12
 

 

 

 
13
 

 

 

 
14
 

 

 

 
15
 

 

 

 
16
 

 

 

 
17
 

 

 

 
18
 

 

 

 
19
 

 

 

 
20
 

 

 

 
21
 

 

 

 
22
 

 

 

 

 

23