Full forgiveness of a loan granted to a subsidiary from the US government program to support business during the coronavirus pandemic
Current Report No. 25/2021
Legal basis: Article 17(1) of MAR – inside information
The Management Board of Medicalgorithmics S.A. (the “Company”, “Issuer”), in connection with the current report no. 27/2020, in which the Company informed that the Issuer’s subsidiary Medi-Lynx Cardiac Monitoring LLC (“Medi-Lynx”) had received a Paycheck Protection Program (PPP) Loan granted under the “CARES Act” adopted by the US Congress as economic support for business during the coronavirus pandemic, including mainly financing of remunerations, informs about forgiveness of the above-mentioned loan. Medi-Lynx obtained a conformation that the Small Business Administration (SBA) has authorized full forgiveness of a loan in the amount of $3,195,135.00, plus all accrued interest, granted to Medi-Lynx as a Paycheck Protection Program. Due to above, Medi-Lynx is not required to make any payments on the mentioned Paycheck Protection Program Loan.
The consequence of the loan forgiveness will be a one-off recognition of the amount of USD 3,195,135.00 (approx. PLN 12.1 m) in the Company’s consolidated financial statements for 1H2021 under other operating income, which will have a positive impact on the operating result and net profit for 1H2021.