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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
November 4, 1996
Date of Report
(Date of earliest event reported)
INDUSTRIAL TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
1-10790 04-2596252
(Commission File Number) (IRS Employer Identification No.)
One Trefoil Drive
Trumbull, Connecticut 06611
(Address of principal executive offices) (Zip Code)
(203) 268-8000
(Registrant's telephone number, including area code)
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Item 5. Other Events.
On November 4, 1996, Industrial Technologies, Inc. (the "Company") and
Intec Europe, Ltd., the Company's indirect wholly-owned subsidiary ("Intec
Europe"), entered into a commercial revolving loan, demand loan and security
agreement (the "Loan Agreement") with American Commercial Finance Corporation
("ACFC"). Pursuant to the Loan Agreement, the Company and Intec Europe may
borrow against eligible accounts receivable and inventory of the Company and
Intec Europe amounts not to exceed $1,500,000. In connection with the Loan
Agreement, the Company and Intec Europe delivered to ACFC a revolving promissory
note in the principal amount of $1,500,000 and a demand promissory note in the
principal amount of $500,000 (collectively, the "Notes"). The total principal
amount outstanding under the Notes may not exceed $1,500,000 at any time. The
Notes bear interest at 4% per annum above the prime rate on a floating basis and
are due and payable on October 31, 1999, unless demand is made by ACFC prior to
such date. The Notes are secured by a first priority security interest in all of
the Company's personal property. In connection with the execution of the Loan
Agreement, the Company issued to ACFC warrants to purchase 100,000 shares of the
Company's Common Stock at an exercise price of $0.50 per share (subject to
adjustment), exercisable until October 31, 2003.
Upon the closing of the Loan Agreement, the Company received an initial
disbursement of $781,500, of which approximately $640,000 was used to repay
existing indebtedness of the Company.
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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.
Date: November 14, 1996 INDUSTRIAL TECHNOLOGIES, INC.
/s/ Joseph Schlig
Joseph Schlig
Vice President, Chief Financial Officer
and Secretary
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