UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.04 Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
On November 16, 2023, Worksport Ltd. (the “Company”) received notice from Northeast Bank alleging that Worksport New York Operations Corporation (the “Borrower”), a wholly owned subsidiary of the Company, breached the terms of a loan agreement dated as of May 4, 2022, by and between the Company and the Borrower (the “Loan Agreement”), relating to a loan in the amount of $5,300,000. The alleged defaults include (i) a debt service coverage ratio calculation and (ii) the Company’s issuance of securities on November 2, 2023, the offering of which is reported in the Current Report on Form 8-K of the Company filed with the Securities and Exchange Commission on November 3, 2023.
Pursuant to the Loan Agreement, in the event of default, among other things, Northeast Bank reserves the right to accelerate all outstanding amounts due under the loan. If Northeast Bank elects to accelerate all amounts due, then the total accelerated amount is equal to the principal, accrued interest, interest at default rate (as applicable), and costs and expenses. The Company is currently in active discussions with Northeast Bank to obtain a waiver for the alleged defaults and will take any other appropriate actions to address this matter.
Item 8.01 Other Items.
On November 24, 2023, Worksport Ltd. (the “Company”) issued a press release announcing recent achievements regarding the Company. A copy of the press release is attached hereto as Exhibit 99.1.
| Exhibit No. | Description | |
| 99.1 | Press Release dated as of November 24, 2023. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WORKSPORT LTD. | ||
| Date: November 24, 2023 | By: | /s/ Steven Rossi |
| Name: | Steven Rossi | |
| Title: | Chief Executive Officer (Principal Executive Officer) | |