CVD EQUIPMENT CORPORATION (NASDAQ:CVV) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
On May 31, 2019, CVD Equipment Corporation (the “Corporation”), via its subsidiary 555 N Research Corporation, entered into two (2) sub-lease agreements with ELM Freight Handlers Inc. (“Tenant”) concerning two portions of its facility located at 555 North Research Place, Central Islip, NY.
First Sublease (West side), approximately 45,000square feet:
The sublease commenced on June 1, 2019 for a term of one year and one month, ending on June 30, 2020. The Tenant has four options to renew for additional one-year periods. The initial base monthly rent is $35,625 per month ($427,500 per annum), with annual increases of 3% per annum. The Corporation will provide one-month free rent in June 2020 and has received two months’ rent as a security deposit. In addition, Tenant is responsible to pay various Common Area Maintenance (“CAM”) charges and real estate tax escalation charges over the 2018/2019 base year.
Second Sublease (East side), approximately 40,000square feet:
The sublease was signed on May 31, 2019, and subject to receipt of rent and security deposit, will commence on July 1, 2019 for a term of one year ending on June 30, 2020. The Tenant has four options to renew for additional one-year periods. During the original term of the lease, Tenant has the right to early termination of the lease, which would be effective December 31, 2019, provided the Tenant provides at least two months’ notice. The initial base monthly rent is $31,667 per month ($380,000 per annum), with annual increases of 3% per annum. The Corporation will provide one-month free rent in July 2020, provided Tenant exercises its first option to renew, and will receive two months’ rent as security deposit. In addition, Tenant is responsible to pay various CAM charges and real estate tax escalation charges over the 2018/2019 base year.
About CVD EQUIPMENT CORPORATION (NASDAQ:CVV)
CVD Equipment Corporation designs and manufactures equipment and process solutions used to develop and manufacture materials and coatings for research and industrial applications. The Company operates through two divisions: CVD/First Nano and Stainless Design Concepts (SDC). The Company’s CVD/First Nano division supplies chemical vapor deposition systems for use in the research, development and manufacturing of aerospace and medical components, semiconductors, light emitting diodes (LEDs), carbon nanotubes, nanowires, solar cells and a number of other industrial applications. The Company’s SDC division designs and manufactures purity gas and chemical delivery control systems for semiconductor fabrication processes, solar cells, LEDs, carbon nanotubes, nanowires, and other industrial applications. Its products include chemical vapor deposition, rapid thermal processing (RTP), annealing and diffusion furnaces, purity gas and liquid control systems, and quartz-ware.
