EACO CORPORATION (OTCMKTS:EACO) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry into a Material Definitive Agreement. |
On April 6, 2017, Bisco Industries, Inc. (Bisco), the
wholly-owned subsidiary of Eaco Corporation (the Company),
entered into a Purchase Agreement for Real Property and Escrow
Instructions (the Purchase Agreement) with a trust beneficially
owned and controlled by Mr. Glen F. Ceiley, the Companys Chief
Executive Officer, Chairman of the Board and major stockholder
(the Trust). to the Purchase Agreement, the Trust agreed to sell
the real property located at 1500 North Lakeview Avenue, Anaheim,
California (the Existing Property), which currently houses the
Companys corporate headquarters and Anaheim distribution center,
for a purchase price of $7,200,000 in cash (such transaction, the
Property Purchase). The Property Purchase will be completed
through an escrow process and subject to customary closing
conditions. The Company expects to close the Property Purchase
within 60 days of the execution of the Purchase Agreement.
The Company agreed to the Property Purchase primarily to
facilitate a plan to relocate its corporate headquarters and
distribution center to a new facility that it has identified in
Anaheim, California, consisting of approximately 80,000 square
feet (the New Property). Due to an existing lease on the New
Property (and the tenant improvements necessary to conform the
New Property to the Companys requirements), the New Property will
not be available for occupancy by the Company for approximately
another two years. The Trust has entered into a purchase
agreement with the third party owner of the New Property to
purchase the New Property, and the Trust plans to facilitate the
relocation by leasing the New Property to Bisco within the next
two and a half years. In order for the Trust to achieve a more
favorable tax treatment for its sale of Existing Property and the
purchase of the New Property, the Company has agreed to enter
into the Purchase Agreement to facilitate the qualification of
such transactions as a Section 1031 exchange under the Internal
Revenue Code of 1986, as amended.
The foregoing description of the Purchase Agreement is not
complete and is qualified in its entirety by reference to the
full text of the Purchase Agreement, a copy of which will be
filed herewith as Exhibit 10.1 to this Current Report on Form 8-K
and is incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d)Exhibits
|
Exhibit No. |
Description |
| 10.1 |
Purchase Agreement for Real Property and Escrow Instructions dated April 6, 2017 between Bisco and the Trust. |
About EACO CORPORATION (OTCMKTS:EACO)
EACO Corporation (EACO) is a holding company. The Company, through its subsidiary, Bisco Industries, Inc. (Bisco), is engaged in the distribution of electronic components and fasteners. The divisions of the Company include Bisco industries, National-Precision and Fast-Cor. Bisco supplies parts used in the manufacture of products in a range of industries, including the aerospace, circuit board, communication, computer, fabrication, instrumentation, industrial equipment and marine industries. The Company operates in the United States and Canada. The National-Precision division sells electronic hardware and commercial fasteners to OEMs in the aerospace, fabrication and industrial equipment industries. National-Precision is the distributor of mil-spec and commercial fasteners, hardware and distribution services used in production. The Fast-Cor has access to the entire inventory of products that Bisco offers but focuses on selling to other distributors. EACO CORPORATION (OTCMKTS:EACO) Recent Trading Information
EACO CORPORATION (OTCMKTS:EACO) closed its last trading session 00.00 at 7.45 with 580 shares trading hands.