UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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): June 27, 2008
| TurboSonic Technologies, Inc. |
| (Exact name of Registrant as specified in its charter) |
| | | |
| Delaware | 0-21832 | 13-1949528 |
| (State of incorporation) | (Commission File No.) | (IRS Employer Identification No.) |
| | | |
| 550 Parkside Drive, Suite A-14 |
| Waterloo, Ontario N2L 5V4 |
| Canada |
| (Address of principal executive offices) |
Registrant's telephone number: (519) 885-5513
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:
£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01.
Other Events.
On or about June 27, 2008, we established a C$4.25 million credit facility with a major Canadian chartered bank, completing a process first initiated in January 2008. We believe this credit facility will strengthen our ability to negotiate international letters of credit and develop business opportunities abroad.
The credit facility, which was extended to Turbosonic Inc., our Canadian subsidiary, has three tranches:
(i)
a C$ 1.5 million operating credit, with availability to be calculated upon varying percentages of our eligible accounts receivable, bearing interest at the bank’s prime rate as adjusted from time to time, and payable on demand;
(ii)
a C$ 2.0 million demand credit for standby letters of credit; and
(iii)
a C$ 750,000 demand credit for foreign exchange contracts.
We have granted the bank a first priority security interest in all of our present and future personal property to secure repayment of all indebtedness incurred under the credit facility. We have also guaranteed repayment of our subsidiary’s indebtedness under the credit facility.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits:
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.
Dated: July 25, 2008
| TurboSonic Technologies, Inc. |
| | |
| | |
| By: | /s/ Egbert Q. van Everdingen |
| | Name: Egbert Q. van Everdingen |
| | Title: President, Secretary & Treasurer |
