GLYECO, INC. (OTCMKTS:GLYE) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Entry Into a Material Definitive Agreement |
NFS Leasing, Inc. Sale and Leaseback
On April 13, 2017, GlyEco, Inc. (GlyEco) and its wholly owned
subsidiary, Recovery Solutions Technologies, Inc. (RST, and
together with GlyEco, the Company) closed an amended
sale-leaseback transaction with NFS Leasing, Inc. (NFS), wherein
the Company sold $1,700,000 of certain operational equipment used
in the Companys glycol recovery and recycling operations (the
Equipment) to a bill of sale, as amended (the Bill of Sale), and
simultaneously entered into a master equipment lease agreement,
as modified (the Lease Agreement) with NFS for the lease of the
Equipment by the Company. to the Lease Agreement, the lease term
(the Lease Term) is for forty-eight (48) months commencing on May
1, 2017. During the Lease Term, the Company is obligated to make
monthly rental payments of $44,720.16 to NFS. The agreements are
effective as of March 31, 2017. At the conclusion of the Lease
Term, the Company may repurchase the Equipment from NFS for One
Dollar ($1.00). The Company intends to use a portion of the
financing to repay the $1,000,000, 5percent Notes due May 31,
2017, and the balance for general corporate and working capital
purposes.
The Lease Agreement contains terms and provisions customary for
transactions of this type, including obligations relating to the
use, operation and maintenance of the Equipment. The Lease
Agreement also contains customary events of default (each, an
Event of Default), including nonpayment of amounts due under the
lease, assignments for the benefit of creditors, bankruptcy or
insolvency, or inaccuracy of representations and warranties. In
the event that an Event of Default occurs, NFS may exercise one
or more remedies specified in the Lease Agreement
The obligations of the Company to NFS under the Lease Agreement
are secured by substantially all of the assets of GlyEco and RST
to two security agreements between the Lessor and each of GlyEco
and RST (the GlyEco Security Agreement and the RST Security
Agreement, respectively).
The foregoing description of the Bill of Sale, the Lease
Agreement, the GlyEco Security Agreement and the RST Security
Agreement is not complete and is qualified in its entirety by
reference to the full text of the Bill of Sale, the Lease
Agreement, the GlyEco Security Agreement and the RST Security
Agreement, the forms of which are filed hereto as Exhibits 10.1,
10.2, 10.3 and 10.4, respectively, and which are incorporated by
reference herein in their entirety.
| Item 2.02 | Results of Operations. |
On April 6, 2017, GlyEco issued a press release announcing its
financial results for the fourth quarter and fiscal year ended
December 31, 2016. A copy of the press release is attached hereto
as Exhibit 99.1 and is hereby incorporated by reference herein.
Exhibit 99.1 contains forward-looking statements regarding the
Company, and includes cautionary statements identifying important
factors that could cause actual results to differ materially from
those anticipated.
| Item 2.03 |
Creation of a Direct Financial Obligation under an Off-Balance Sheet Arrangement of a Registrant |
The information set forth in Item 1.01 is incorporated by
reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
| Exhibit No. | Description | |
| 10.1 |
Bill of Sale of GlyEco, Inc. and Recovery Solutions Technologies, Inc. dated March 31, 2017 and amendment thereto. |
|
| 10.2 |
Lease Agreement, as amended, by and between NFS Leasing, Inc., GlyEco, Inc. and Recovery Solutions Technologies, Inc. dated March 31, 2017 and modification thereto. |
|
| 10.3 |
Security Agreement by and between NFS Leasing, Inc. and GlyEco, Inc. dated March 31, 2017. |
|
| 10.4 |
Security Agreement by and between NFS Leasing, Inc. and Recovery Solutions Technologies, Inc. dated March 31, 2017. |
|
| 99.1 | Press Release of GlyEco, Inc. dated April 6, 2017. |
About GLYECO, INC. (OTCMKTS:GLYE)
GlyEco, Inc. is engaged in processing of waste glycol into recycled glycol products, specifically automotive antifreeze, and related specialty blended antifreeze, which it sells in the automotive and industrial end markets. The Company’s product offerings include High-Quality Recycled Glycols, Recycled Antifreeze, Recycled HVAC Fluids, Waste Glycol Disposal Services and Windshield Washer Fluid. The Company’s technology allows it to produce glycols, which can be used in industrial application. It formulates various universal recycled antifreeze products for engine coolants. In addition, it customs blend recycled antifreeze to customer specifications. It formulates a universal recycled, heating, ventilating and air conditioning (HVAC) coolant for HVAC fluids. Utilizing its fleet of collection/delivery trucks, the Company collects waste glycol from generators for recycling. It delivers Windshield Washer Fluid product into same store and new store customers as a non-recycled product. GLYECO, INC. (OTCMKTS:GLYE) Recent Trading Information
GLYECO, INC. (OTCMKTS:GLYE) closed its last trading session up +0.0030 at 0.0880 with 21,650 shares trading hands.