GLYECO, INC. (OTCMKTS:GLYE) Files An 8-K Entry into a Material Definitive AgreementItem 1.01
NFS Leasing, Inc. Sale and Leaseback
As previously disclosed on Current Report to Form 8-K filed by GlyEco, Inc. (“GlyEco”) on April 17, 2017, on April 13, 2017, GlyEco and its wholly owned subsidiary, Recovery Solutions & Technologies, Inc. (“RS&T”, and together with GlyEco, the “Company”) entered into a master equipment lease agreement, as modified (the “Lease Agreement”) with NFS Leasing, Inc. (“NFS”) for the lease of certain equipment by the Company. The obligations of the Company to NFS under the Lease Agreement are secured by substantially all of the assets of GlyEco and RS&T to two security agreements between the Lessor and each of GlyEco and RS&T (the “GlyEco Security Agreement” and the “RS&T Security Agreement”, respectively).
On March 1, 2018, the Company and NFS entered into an Interim Loan Financing Agreement (the “Loan Agreement”) with respect to NFS’ purchase of new equipment (the “New Equipment”) from a vendor on account of the Company, which is estimated to cost approximately $150,000 (the “Equipment Cost”). In connection therewith, the Company will owe the Equipment Cost to NFS for the lease of the New Equipment by the Company (the “Loan”). The Loan Agreement provides that the Company will make certain interest payments to NFS until the Company receives and accepts the New Equipment. At such time, the Loan Agreement will no longer be of any force and effect, the Loan will be subject only to the Lease Agreement, and the repayment of the Loan will be governed by the Lease Agreement. to the Loan Agreement, the GlyEco Security Agreement and the RS&T Security Agreement were amended and restated to evidence the new obligations under the Loan Agreement and the security interests in the New Equipment.
The foregoing description of the amended and restated GlyEco Security Agreement and the amended and restated RS&T Security Agreement is not complete and is qualified in its entirety by reference to the full text of the amended and restated GlyEco Security Agreement and the amended and restated RS&T Security Agreement, the forms of which are filed hereto as Exhibits 10.1 and 10.2 respectively, and which are incorporated by reference herein in their entirety.
| 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
GlyEco, Inc. ExhibitEX-10.1 2 s109263_ex10-1.htm EXHIBIT 10.1 Exhibit 10.1 AMENDED AND RESTATED SECURITY AGREEMENT AMENDED AND RESTATED SECURITY AGREEMENT ________,…To view the full exhibit click here
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.
