Speedemissions, Inc. (OTCMKTS:SPMI) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
|
Entry Into a Material Definitive Agreement.
|
Speedemissions, Inc. (the Company) entered into and closed an
Asset Purchase Agreement (the Purchase Agreement) with Auto
Recycling of Montgomery, Inc., an Alabama corporation (ARM), to
which the Company agreed to purchase certain assets of ARM,
including land, buildings, equipment and inventory previously
used by ARM in an auto recycling operation which ceased
operations in June of 2014. The purchase price was $175,000 for
the land and buildings and $90,000 for the equipment and
inventory. The Company entered into two separate note agreements
with ARM to fund the purchase of the assets. Terms of each note
included an interest rate of ten percent, an amortization term of
ten years and a seven year balloon payment. Monthly payments for
the $175,000 land and buildings note and for the $90,000
equipment and inventory note will be $2,313 and $1,189,
respectively. Using the acquired assets, the Company intends to
create an auto recycling business operation, but expects it will
take approximately 60 days to hire employees and put the
necessary business systems in place before sales operations can
commence. Under the terms of the Purchase Agreement, payments on
the notes will commence 120 days after the closing date of the
Purchase Agreement.
an auto recycling business. The Company intends to seek other
acquisitions, subject to capital availability, and develop an
auto recycling business segment in addition to the Companys
existing vehicle emissions testing business segment.
purport to be complete and is qualified in its entirety by
reference to the Purchase Agreement which is filed as Exhibit
10.1 to this Current Report on Form 8-K and is incorporated
herein by reference. The Purchase Agreement is described in, and
included as an exhibit to, this Current Report on Form 8-K to
provide information regarding its terms and conditions, but it is
not intended to provide any other factual information regarding
the Company.
| Item 2.01 |
Completion of Acquisition or Disposition of Assets.
|
Form 8-K is incorporated herein by reference.
|
Item 9.01
|
Financial Statements and Exhibits
|
|
(d)
|
EXHIBITS
|
|
Exhibit
|
|
|
Number
|
Description of Document
|
|
10.1
|
Asset Purchase Agreement with Auto Recycling of Montgomery,
Inc., dated March 20, 2017 |
About Speedemissions, Inc. (OTCMKTS:SPMI)
Speedemissions, Inc. (Speedemissions) is a test-only emissions testing and safety inspection company in the United States. The Company performs vehicle emissions testing and safety inspections in certain cities, in which vehicle emissions testing is mandated by the United States Environmental Protection Agency (EPA). It operates approximately 20 vehicle emissions testing and safety inspection stations under the trade names of Speedemissions, Auto Emissions Express (in Atlanta, Georgia and St. Louis, Missouri) and Just Emissions (in Salt Lake City, Utah). It also operates over three mobile testing units in the Atlanta, Georgia area, which service automotive dealerships and local government agencies. There are over two types of primary emissions tests that are performed, the Accelerated Simulated Model (ASM) and the On-Board Diagnostic (OBD). The ASM test is performed on vehicles produced before 1996, while the OBD test is conducted on vehicles produced during and after 1996. Speedemissions, Inc. (OTCMKTS:SPMI) Recent Trading Information
Speedemissions, Inc. (OTCMKTS:SPMI) closed its last trading session up +0.00190 at 0.00540 with 6,000 shares trading hands.
