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): May 3, 2020

 

 

Kewaunee Scientific Corporation

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   0-5286   38-0715562
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

 

2700 West Front Street

Statesville, North Carolina

  28677
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: 704-873-7202

N/A

(Former name or former address, if changed since last report.)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange
on which registered

Common Stock, $2.50 par value   KEQU   NASDAQ Global Market

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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 1.01

Entry into a Material Definitive Agreement.

On May 7, 2020, Kewaunee Scientific Corporation (the “Company”) obtained a loan (the “Loan”) from Wells Fargo Bank, National Association (the “Lender”) in the aggregate amount of $7,980,419 pursuant to the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Loan is evidenced by a promissory note dated May 3, 2020 (the “Note”). The Loan matures on May 3, 2022, bears interest at a fixed rate of 1.00% per annum, and is unsecured and guaranteed by the Small Business Administration (the “SBA”). Beginning on November 1, 2020, the Company is required to make 18 monthly payments of principal and interest in the amount of $338,611.74. All remaining unpaid principal, accrued interest, and any other unpaid amounts shall be due and payable in full upon maturity. The Note may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The Note provides for customary events of default including, among other things, payment defaults, making materially false or misleading representations to the Lender or the SBA, or failing to comply with the provisions of the Note. The Loan may be accelerated upon the occurrence of an event of default.

Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of such loans. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payment of payroll costs and any covered payments of mortgage interest, rent, and utilities. The Company intends to apply to the Lender for forgiveness of the Loan in accordance with the terms of the CARES Act; however, no assurance can be provided that the Company will obtain forgiveness of the Loan in whole or in part.

A copy of the promissory note will be filed as an exhibit to the Company’s Form 10-K for the fiscal year ended April 30, 2020.

 

Item 2.03

Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Reference is made to the disclosure under Item 1.01 above which is hereby incorporated by reference into this Item 2.03.


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.

 

                    (Registrant)
    Kewaunee Scientific Corporation
Date: May 7, 2020       /s/ Donald T. Gardner III
      Donald T. Gardner III
     

Vice President, Finance and

Chief Financial Officer

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