RumbleOn, Inc. Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by RumbleOn, Inc. (a Nevada corporation) on November 8, 2017, reporting events occurring on November 2, 2017. The Company is an emerging growth company. The filing discloses the entry into a material definitive agreement and the creation of a direct financial obligation.
Key Financial Metrics and Obligations
- Debt Facility: Entered into a floor plan line of credit with NextGear Capital, Inc.
- Principal Amount: $2,000,000.00 (or such lesser sum advanced).
- Interest Rate: Variable rate based on Lender schedules; effective rate was 6.5% as of November 2, 2017. Interest compounds daily.
- Repayment Terms: Due upon demand, generally no later than 150 days from the date of request or purchase.
- Collateral: Secured by a security interest in vehicle inventory and other assets of the Borrower (RMBL Missouri, LLC).
- Guaranty: The obligation is guaranteed by RumbleOn, Inc.
Material Changes
The filing reports the establishment of a new $2 million credit facility. No prior period financial data or comparative metrics are provided in this specific filing text.
Outlook, Risks, and Contingencies
- Default Provisions: Upon any event of default, the Lender may demand immediate payment of all liabilities without notice.
- Liquidity Impact: The facility provides access to capital for vehicle inventory financing but introduces a demand debt obligation.
- Unusual Items: None reported beyond the standard terms of the floor plan agreement.
Investor Verification Checklist
- Verify the actual drawdown amount against the $2,000,000 limit.
- Review the full text of the Demand Promissory Note (Exhibit 10.1) for specific default triggers.
- Monitor the variable interest rate schedule published by NextGear Capital, Inc.
- Confirm the status of the vehicle inventory pledged as collateral.