Business Context and Reporting Period
Company: My Size, Inc.
Filing Type: Form 8-K (Current Report)
Report Date: February 24, 2017
Event Date: February 22, 2017
Context: The filing discloses a material event regarding a breach of a convertible loan agreement with a private investor.
Key Financial Metrics
The filing does not provide standard financial performance metrics such as revenue, profit, cash flow, margins, or overall debt levels. The only specific financial figures disclosed relate to the disputed loan agreement:
- Agreed Loan Amount: $495,000 USD
- Conversion Terms: 141,428 common shares at an exercise price of $3.50 per share
- Current Status: Funds were not received; postdated checks provided by the investor were returned by the bank.
Material Changes
The primary material change is the failure of a private investor and a third-party guarantor to fulfill obligations under a convertible loan agreement dated May 22, 2016. Consequently, the Company has not received the anticipated capital injection of $495,000 USD.
Outlook, Risks, and Management Commentary
Management Action: The Company attempted to reach an amicable solution regarding the breach but failed. On February 22, 2017, the Company issued a written notice to the Investor and Guarantor demanding full payment by February 27, 2017.
Contingencies and Risks:
- If payment is not received by the deadline, the Company considers it a grave and fundamental breach of the Agreement.
- The Company intends to immediately commence appropriate legal action to protect its interests if the deadline is missed.
- Liquidity risk exists due to the failure to receive the expected loan proceeds.
Investor Verification Checklist
- Verify the current cash position of My Size, Inc. to assess the impact of the missing $495,000 USD.
- Monitor for subsequent filings indicating whether legal action was initiated after the February 27, 2017 deadline.
- Review the Company's capitalization table to confirm if the 141,428 shares were ever issued or if the agreement was voided.
- Check for any other pending financing arrangements that may have been affected by this breach.