Datatrak International, Inc. Secures Loan Under the Paycheck Protection Act

Datatrak International, Inc. (OTC Markets: DTRK), a software-as-a-service provider and innovation leader of cloud-based technologies for the life sciences industry, disclosed that the Company has received a loan under the Paycheck Protection Program (“PPP”).

The PPP was established under the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration (“SBA”).  The PPP allows businesses and nonprofits with fewer than 500 employees to obtain loans of up to $10 million to incentivize companies to maintain their workers as they manage business disruptions caused by the COVID-19 pandemic.  Datatrak applied, and was approved on April 18, 2020 for, a PPP loan through Key Bank in the amount of $845,938 (the “PPP loan”).  The PPP loan is a two-year, unsecured promissory note with an interest rate of 1% annum.  Payments under the PPP loan are deferred for the first six months, after which monthly payments of principal and interest are due for any portion of the PPP loan which is not forgiven.  The PPP loan may be prepaid at any time prior to maturity with no prepayment penalties. The PPP loan note matures on April 18, 2022. The PPP loan note contains customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the SBA or Key Bank, or breaching the terms of the PPP loan documents. The occurrence of an event of default may result in the immediate repayment of all amounts outstanding, collection of all amounts owing from Datatrak, or filing suit and obtaining judgment.

Under the terms of the CARES Act, PPP loan recipients can apply for, and be granted, forgiveness for all or a portion of the loans used during the eight-week period following receipt of the loan, based on the use of loan proceeds for payroll costs to maintain employee compensation levels and rent or utility costs. However, Datatrak can provide no assurance that forgiveness for any portion of the PPP loan will be obtained.

“As Datatrak maintains operations remotely during this pandemic, the PPP loan provides a solid foundation for the Company to weather uncertainty in any business delays,” said Jim Bob Ward, CEO and President of Datatrak.   

About Datatrak International, Inc.

Datatrak International, Inc. is a software-as-a-service provider of enterprise cloud-based technologies for the life sciences industry.  Datatrak’s unified eClinical solutions and related services help improve cost and time efficiencies for the clinical trials industry. Datatrak built its multi-component, comprehensive solution on a single, unified platform and expanded this concept to include services delivery via Datatrak’s Clinical and Consulting Services group. The Company delivers a complete portfolio of software products designed to accelerate the reporting of clinical research data from sites to sponsors and ultimately regulatory authorities, faster and more efficiently than loosely integrated technologies. The Datatrak Enterprise Cloud software solution, deployed worldwide through an ASP or Enterprise Transfer offering, supports Preclinical and Phase I - Phase IV drug and device studies in multiple languages throughout the world. Datatrak is located in Cleveland, Ohio and College Station, Texas.  For more information, visit http://www.datatrak.com.

Contacts:

Sales: Scott DeMell                            Employment Opportunities              Shareholders:   

Scott.DeMell@datatrak.com              Laura.Stuebbe@datatrak.com        investor@datatrak.com