Northern Lights Acquisition Enters Into Agreement to Defer Principal Payments on Senior Secured Promissory Note with Partner Colorado Credit Union

On January 29, 2025, Northern Lights Acquisition (OTCMKTS:NLITU) announced that it had come to an agreement with Partner Colorado Credit Union (PCCU) to defer the principal payments on their Senior Secured Promissory Note for the months of February and March 2025. The company disclosed the details of this arrangement in a recent 8-K filing with the Securities and Exchange Commission.

The Senior Secured Promissory Note, initially entered into on March 29, 2023, involved a principal amount of $14,500,000 and bore interest at a rate of 4.25%. Additionally, a Security Agreement was implemented to collateralize the Note, with the company granting a first-priority security interest in a significant portion of its assets to secure the agreement.

As part of the new agreement, Northern Lights Acquisition will continue to be responsible for interest payments during the Principal Payment Deferral Period and will extend the repayment period of the Note by an additional two months. This temporary pause in principal payments aims to provide the company with more financial flexibility and liquidity during this period.

The company shared a letter agreement enacted on January 29, 2025, which outlines the terms of the deferral and a subsequent press release commemorating this arrangement. These documents have been included as Exhibits 99.1 and 99.2 in the Form 8-K filing, respectively.

Northern Lights Acquisition (OTCMKTS:NLITU) is classified as an emerging growth company as defined by Rule 405 of the Securities Act of 1933. Although the company falls under this category, it has not elected to use the extended transition period for complying with new or revised financial accounting standards outlined by the Securities Exchange Act of 1934.

This development underscores the company’s commitment to engaging in fruitful discussions with its financial partners to navigate challenges effectively and fortify its financial position moving forward. The temporary modification of the Note showcases a collaborative effort between Northern Lights Acquisition and PCCU to explore opportunities for mutual benefit.

Investors and stakeholders are encouraged to review the full 8-K filing for a comprehensive understanding of the agreement and its implications for Northern Lights Acquisition.

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This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Northern Lights Acquisition’s 8K filing here.

Northern Lights Acquisition Company Profile

Northern Lights Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the cannabis industry. The company was incorporated in 2021 and is based in New York, New York.