| Item 1.02 | Termination of a Material Definitive Agreement. |
Previously, MiMedx Group, Inc. (the “Company”) and certain of its subsidiaries entered into that certain Credit Agreement, dated as of October 12, 2015, by and among the Company, certain subsidiaries of the Company party thereto, as guarantors, certain lenders party thereto, and Bank of America, N.A., as administrative agent, which was first amended on January 10, 2016 and later amended on September 28, 2017 (the “Credit Agreement”).
The Credit Agreement requires the Company, among other things, to timely file certain periodic reports with the United States Securities and Exchange Commission. As previously disclosed, the Company’s Audit Committee is conducting an independent internal investigation into current and prior-period matters concerning sales and distribution practices and other matters. The Company has also stated that it cannot file any restatements of its previously filed financial statements and related reports with the Securities and Exchange Commission (“SEC”) until the Audit Committee’s investigation is completed and audited financial statements have been prepared.
As a result, the Company on August 31, 2018 terminated the lending parties’ commitments to make loans and issue letters of credit under the Credit Agreement. Accordingly, the Company will no longer have the ability to borrow under it. There were no outstanding borrowings or letters of credit issued under the Credit Agreement at the time of termination, and the Company never drew down any amounts under the credit facility during the entire term of the agreement. No termination penalties were paid as a result of the termination. We expect the Credit Agreement to be formally terminated, and the liens on the Company’s assets to be released, in due course.
