Business
Cool Holdings Cures Default and Extinguishes $6.6 Million of Debt After Restructuring Agreement with GameStop
Cool Holdings Cures Default and Extinguishes $6.6 Million of Debt After Restructuring Agreement with GameStop.
About this update from Simply Inc.
[{"type":"text","content":"\n\n\n\nCool Holdings Cures Default and Extinguishes $6.6 Million of Debt After Restructuring Agreement with GameStop\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nCool Holdings Cures Default and Extinguishes $6.6 Million of Debt After Restructuring Agreement with GameStop\nPR Newswire\nMIAMI, March 17, 2020\n\n\n\nMIAMI, March 17, 2020 /PRNewswire/ -- Cool Holdings, Inc. (OTCQB: AWSM) (the \"Company\" or \"Cool Holdings\"), the parent company of Simply Mac, Inc., the largest Apple Premier Partner in the U.S. (\"Simply Mac\"), and GameStop Corp. (\"GameStop\"), have completed a restructuring of the debt owed to GameStop by the Company.\nOn September 25, 2019, Cool Holdings purchased all of the outstanding stock of Simply Mac from GameStop.  A portion of the consideration for the purchase included a 12% Secured Promissory Note for $7,858,000 (the \"Note\") that was due in quarterly installments beginning December 25, 2019.  The Company anticipated that it would be able to raise sufficient equity capital to pay the quarterly Note installments.  However, that did not occur, and the Company was unable to make the first installment payment.  Consequently, on January 15, 2020, the Company received a notice of default from GameStop of its obligations under the Note (the \"Default\"). \nThe Company announced today that on March 11, 2020 it closed the restructuring of the Note and related agreements in a settlement that resulted in a curing of the Default and the following:\nCool Holdings made an immediate payment of $250,000 to GameStop; $345,000 held in escrow to secure the indemnity obligations of GameStop in connection with the Simply Mac sale to Cool Holdings was released to GameStop; The original Note was amended so that the principal amount was adjusted downward to $1,250,000, the Note became unsecured and all Company assets formerly secured were released, the interest rate is set at 6% and all principal and interest accrued from March 11, 2020 will be due upon maturity on February 17, 2024.About Cool Holdings, Inc.Cool Holdings is a Miami-based ...