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CURRENT REPORT
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Item 2.04 Trigger Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On December 8, 2022, Altitude International Holdings, Inc. (the “Company”) received a “Notice of Events of Default; Reservation of Rights; and Notice of Default Interest Accrual” letter (the “Notice”) from FVP Servicing, LLC, (“FVP”) the administrative agent for certain lenders. The Notice relates to that certain Amended and Restated Loan Agreement (the “Loan Agreement”) executed on September 2, 2022, by and between the Company, Altitude Hospitality, LLC and Trident Water, LLC (collectively, the “Borrowers”), the lenders party thereto and FVP under which the Borrowers borrowed Eighteen Million Two Hundred Fifty Thousand Dollars ($18,250,000) with an interest rate per annum of SOFR (with a 2% floor) plus thirteen percent (13%) (with $15,000,000 due on September 2, 2025 and $3,250,000 (from the previous “Original Loan” executed on April 29, 2022) due on the earlier of (i) November 30, 2022 or (ii) the date of an uplist offering) (the “Loan”). The Company and its wholly owned subsidiaries guaranteed the Borrowers’ obligations under the Loan and pledged their equity and granted a security interest in all their assets.
The Notice designates two events of default under the Loan Agreement, including the failure to obtain deposit account control agreements and failure to pay the Original Loan amount of $3,250,000 by November 30, 2022. As of December 14, 2022, FVP has granted an extension of 90 days to obtain the deposit account control agreements. The parties are working in good faith to address and resolve the events of default.
The Notice declared that, effective as of November 30, 2022, the interest rate under the Loan Agreement will be charged at a default interest rate of twenty percent (20%) per year until all events of default are cured or waived in writing by FVP.
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: December 14, 2022
ALTITUDE INTERNATIONAL, INC. | ||
By: | /s/ Gregory C. Breunich | |
Name: | Gregory C. Breunich | |
Title: | Chief Executive Officer |