GLYECO, INC. (OTCMKTS:GLYE) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
On January 14, 2020, GlyEco, Inc. (“GlyEco,” or the “Company”) and GlyEco West Virginia, Inc. (f/k/a Recovery Solutions & Technologies, Inc.), a Delaware corporation and wholly-owned subsidiary of the Company (“GlyEco WV” and collectively with the Company, the “GlyEco Parties”) entered into a strict foreclosure agreement (the “Agreement”) with NFS Leasing, Inc., a Massachusetts corporation (“NFS”) that consists of the GlyEco Parties’ agreement and consent to NFS’s acceptance of certain collateral pledged by the GlyEco Parties (the “Collateral”) in partial satisfaction of certain obligations under that certain the Amended and Restated Security Agreement between GlyEco WV and NFS dated May 23, 2019 and the Amended and Restated Security Agreement (and related documents) between the Company and NFS dated effective as of May 23, 2019 (together, the “Security Agreements”), which were previously disclosed in the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on June 6, 2019. A copy of the Agreement is included as Exhibit 10.1 to this current report and is hereby incorporated by reference.
The Agreement memorializes the GlyEco Parties’ consent to NFS’s election to accept the Collateral in partial satisfaction of the GlyEco Parties’ obligations to the Security Agreements and the GlyEco Parties’ waiver of the right to notice of such election to Uniform Commercial Code.
The Agreement also provides for NFS’s acceptance of the Collateral in satisfaction of $2,825,725.42 of the $5,687,026.78 (the “Total Balance”) outstanding due from the GlyEco Parties to NFS to the Security Agreements as of January 13, 2020. The GlyEco Parties remain liable, jointly and severally, under the Security Agreements to NFS for the remainder of the Total Balance of $2,861,301.36.
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Departure of Directors
On January 16, 2020, Dwight Mamanteo, Charles Trapp, Frank Kneller, and Scott Nussbaum (together, the “Independent Directors”) tendered their resignations as directors of the Company effective immediately. The resignations were not the result of any disagreement with the Company on any matter relating to its operations, policies, or practices.
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.