Item 1.01. Entry into a Material Definitive Agreement.
ShiftPixy, Inc. (the "Company") has previously issued (i) asenior secured
convertible note to an institutional investor dated June 4, 2018 (the "June
Note"), and (ii) one dated March 12, 2019, (the "March Note"). A third note was
issued to investors on December 20, 2018 to resolve matters involving the June
Notes (the "December Note").
On or about July 18, 2019, Dominion Capital LLC filed a complaint in the United
States District Court for the Southern District of New York alleging, among
other things, a Default on its June Note, a Default on its December Note, and a
Default on its March Note. On January 10, 2020, the U.S. District Court entered
a Judgment for Dominion for approximately $1,996,000 plus interest at an annual
rate of 18%, costs, and fees.
On January 22, 2020, the Company reached an agreement to pay the judgment by
payment of cash and conversion of existing convertible notes resulting in the
payment of cash of $1,321,568.86 and the issuance of 83,593 shares of common
stock.
The Settlement Agreement is included as Exhibit 10.1 to this filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Description No.
10.1 Settlement Agreement between Dominion Capital and the Company
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