Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On October 8, 2021, Assisted 4 Living, Inc., a Nevada corporation (the
"Company"), entered into a guaranty agreement in connection with a loan made to
its wholly-owned subsidiary, Assisted 4 Living Consulting, Inc. ("Borrower") in
the principal amount of $1,250,000 (the "Loan"). Pursuant to the terms of the
guaranty agreement, the Company has unconditionally guaranteed the payment of
all indebtedness, liabilities and obligations of every kind and nature of
Borrower to the lender whether absolute or contingent, direct or indirect, due
or to become due, heretofore or hereafter created, arising or exiting including
any additional advances or future advances, renewals or extensions without
limitation as to amount. The Loan is evidenced by a promissory note. Outstanding
principal accrues interest at an annual rate of ten percent (10%). Monthly
payments in the amount of $10,416.67 commence on November 8, 2021 and continue
for 12 months until the maturity date of October 8, 2022, at which time the
remaining principal balance, if any, is due and payable. The Loan is secured by
a first mortgage lien on property that is owned by Borrower and serves as the
Company's corporate headquarters.
If any portion of the principal is paid prior to July 8, 2022, then Borrower
must pay a prepayment fee calculated as the difference between nine months of
interest on the amount of principal being prepaid and the amount of interest
paid to date on the amount of principal being prepaid. The lender is guaranteed
nine months of interest regardless of when Loan is paid off.
After the maturity date or due date of the promissory note, interest shall be
charged on the respective principal amount remaining unpaid at a rate equivalent
to the highest lawful rate or twenty-five percent (25%) per annum, whichever is
less, until paid.
If any payment of principal or interest or both is more than five days late,
Borrower agrees to pay lender a late charge equal to five percent (5.0%) of the
payment.
The foregoing summary of the promissory note and the guaranty agreement are
qualified in their entirety by reference to the full text of the promissory note
and guaranty agreement which are attached hereto as Exhibit 10.1(a) and 10.1(b),
respectively, and incorporated herein by reference. You are urged to read said
exhibits attached hereto in their entirety.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit
Number Description
10.1(a) Promissory Note dated October 8, 2021 in the principal amount of
$1,250,000 made by Assisted 4 Living Consulting, Inc.
10.1(b) Personal Guaranty made by Assisted 4 Living, Inc. dated October
8, 2021.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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