Item 1.01 Entry Into a Material Definitive Agreement.
On September 30, 2020, (i) Canterbury Park Entertainment, LLC, (the “Borrower”), a Minnesota limited liability company and subsidiary of Canterbury Park Holding Corporation, a Minnesota corporation (the “Company”); (ii) the Company as Guarantor; (iii) Canterbury Park Concessions, Inc. a Minnesota corporation and subsidiary of the Company; and (iv) and Bremer Bank, National Association (“Bremer Bank”) entered into the Fourth Amendment Agreement (“Fourth Amendment”) to the General Credit and Security Agreement dated as of November 14, 2016, as amended (“Credit Agreement”), which established an $8.0 million credit facility from Bremer Bank to the Borrower.
The Fourth Amendment extended the maturity date of the Credit Agreement to December 31, 2020 and decreased the maximum borrowing under the line of credit to $6.0 million. Except as expressly amended in the Fourth Amendment, the Credit Agreement and the documents associated therewith, remain in full force and effect in accordance with their original terms.
The foregoing description of the material terms of the Fourth Amendment is not complete and is qualified in its entirety by reference to the full text of the Fourth Amendment thereof, a copy of which is incorporated by reference as an exhibit to this Current Report on Form 8-K and is incorporated herein by reference.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 1, 2020, the Board of Directors of the Company elected Mark Chronister to the Company’s Board of Directors to fill an existing vacancy. Following the election of Mr. Chronister, the Board of Directors is comprised of six directors. Also, on October 1, 2020, Mr. Chronister was appointed to the Company’s Audit Committee to serve with directors Carin J. Offerman (Chair), Maureen H. Bausch, and John S. Himle.
Mr. Chronister, age 69, retired in 2007 as an audit partner in the Minneapolis office of PricewaterhouseCoopers, LLP (PwC) after 34 years at the firm. From 2007 to current, Mr. Chronister has been focused on board and community service. Currently, Mr. Chronister is an Advisory Board member of RiskClimate LLC, a start-up creating enterprise risk management software for higher education, the Finance and Development Council Chair and Community Council member for the Pax Christi Catholic Community, a Board member, past Treasurer and Audit and Finance Committee Chair for the Science Museum of Minnesota, and an Advisory Board member for the Hendrickson Institute of Ethical Leadership, St. Mary’s University of Minnesota.
Mr. Chronister is an “independent director” under the Nasdaq Listing Rules. Mr. Chronister also meets the criteria for independence set forth in Rule 10A-3(b)(1) under the Securities Exchange Act of 1934, as amended, and is an “audit committee financial expert” as defined in Item 407(d)(5) of Regulation S-K promulgated under the Securities Exchange Act of 1934, as amended. Mr. Chronister does not have any direct or indirect material interest in any transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K promulgated under the Securities Exchange Act of 1934, as amended.
On October 2, 2020, the Company announced the election of Mr. Chronister by the press release attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d.) Exhibits
