Item 1.01 Entry into a Material Definitive Agreement.
On February 23, 2011, Maui Land & Pineapple Company, Inc. (the “Company”) entered into a Third Modification Agreement (the “Third Modification”) with Wells Fargo Bank, National Association (“Wells Fargo”). The Third Modification further amended the terms of the Company’s $30 million revolving line of credit agreement with Wells Fargo, which was modified on December 22, 2010. Significant terms of the Third Modification are as follows:
* Extends the maturity date from May 1, 2012 to May 1, 2013.
* Provides the Company with the option to further extend the maturity date to May 1, 2014, subject to the satisfactory achievement of certain pre-defined conditions as described in the Third Modification.
* Increases the revolving credit commitment from $30 million to $34.5 million and availability under the loan facility from $25 million to $34.5 million.
* Sets forth pre-established minimum release prices for each of the real property parcels pledged as collateral under the credit agreement.
Upon entry into the Third Modification, the maturity date of the Company’s $25 million term loan with American AgCredit, FLCA was automatically extended from May 1, 2012 to May 1, 2013.
NYSE: ML&P isn’t meeting listing levels
Company has 45 days to offer a way to meet exchange standards
WAILUKU – The New York Stock Exchange has warned Maui Land & Pineapple Co. that it is no longer meeting listing standards.
ML&P announced on Friday that it had received the warning.
The company’s average market capitalization was less than $50 million over a 30-day trading period, and its most recently reported shareholders’ equity was less than $50 million, putting it out of compliance with the stock exchange’s requirements.
Under the NYSE’s procedures, ML&P has 45 days to submit a plan to demonstrate its ability to come back into compliance with the stock exchange’s listing standards within the next 18 months. In the meantime, the company’s common stock will continue to be listed.
In a report filed last month with the Securities and Exchange Commission, ML&P disclosed that auditors updating its annual report in advance of a new stock offering had "substantial doubt" about the company’s ability to stay in business.
The report cited the company’s deep financial losses, weak cash reserves, inability to meet certain financial obligations and a $60 million deficit in shareholder equity as reasons for the auditors’ concerns.
ML&P is hoping to raise up to $25 million in the form of new investment from existing shareholders, an offering that is now pending approval from the SEC.