Unassociated Document
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)
October 22, 2008
ACORN
ENERGY, INC.
(Exact
name of Registrant as Specified in its Charter)
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Delaware
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0-19771
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22-2786081
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(State
or Other Jurisdiction
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(Commission
file Number)
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(IRS
Employer
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of
Incorporation)
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Identification
No.)
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4
West Rockland, Montchanin, Delaware
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19710
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(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code (302)
656-1707
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:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-2 under
the Exchange Act (17 CFR 240.14a-2)
o Pre-commencement
communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement
communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
1.01 Entry
into a Material Definitive Agreement.
On
October 22, 2008, the subsidiaries of CoaLogix, Inc. (“CoaLogix”), CoaLogix
Solutions Inc., CoaLogix Tech Inc., SCR-Tech, LLC and Metallifix LLC (the
“CoaLogix Subsidiaries”), entered into a Loan and Security Agreement (the “Loan
Agreement”) with Square 1 Bank (the “Bank”). Coalogix is a majority-owned
subsidiary of Acorn Energy, Inc. Under the Loan Agreement, the Bank has agreed
to provide the CoaLogix Subsidiaries with a three-year term loan of $500,000
($250,000 of which is available immediately during the first six months and
$250,000 of which is available during the following six months) and a three-year
$2,000,000 formula based line of credit. Advances under the line of credit
may
not exceed 80% of the eligible receivables of the CoaLogix Subsidiaries.
Interest of prime plus 0.75% on the line of credit is due monthly. All balances
of principal and unpaid interest of the line of credit will be due at maturity.
During the first 12 months under the term loan, interest of prime plus 1.50%
is
due monthly. Thereafter for the term loan, principal and interest will be
amortized over 24 months in equal monthly installments. The loans are secured
by
all assets of the CoaLogix Subsidiaries other than intellectual property. Under
the Loan Agreement, CoaLogix Subsidiaries must comply with financial and other
covenants. The loans will be used for working capital and growth purposes.
CoaLogix has entered into an Unconditional Guaranty in favor of the Bank
pursuant to which it has guaranteed the obligations of the CoaLogix Subsidiaries
under the Loan Agreement.
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 on this 28th day of October, 2008.
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ACORN
ENERGY, INC.
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By: |
/s/
Sheldon Krause
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Name:
Sheldon Krause
Title:
Secretary and General Counsel
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