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CTD Holdings, Inc. 8-K Report: Major Asset Sale & Debt Repayment Overview

$CYTHW
Form 8-K
Filed on: 2016-12-20
Source
CTD Holdings, Inc. 8-K Report: Major Asset Sale & Debt Repayment Overview

Here's a summary of the key information extracted from the financial report (Form 8-K) regarding CTD Holdings, Inc.:

Key Information:

  1. Event Date: The report concerns an event that occurred on December 16, 2016.
  2. Company Overview:
  • Name: CTD Holdings, Inc.
  • Location: Alachua, Florida.
  • Commission File Number: 000-25466.
  • IRS Employer Identification Number: 59-3029743.
  • Telephone: 386-418-8060.
  1. Material Agreement:
  • The company completed the sale of its office and manufacturing facility located in Alachua, Florida, for a total purchase price of $980,000.
  • The sale was executed through a Commercial Contract with Alchem Laboratories Corporation, signed on September 6, 2016.
  1. Asset Breakdown:
  • Real Property Sale: Sold for $800,000.
  • Manufacturing Equipment: Sold for $180,000 (including a pulse dryer).
  1. Debt Repayment:
  • The company used $664,800 of the proceeds to fully repay outstanding debts to Regions Bank, which included:
    • A mortgage loan secured by the sold real property.
    • An equipment loan secured by the sold equipment.
  • This repayment terminated the loan agreements with Regions Bank.
  1. Net Cash Proceeds:
  • After debt repayment and transaction expenses, the net cash proceeds to CTD Holdings, Inc. amounted to $255,690. This amount is earmarked for working capital purposes.
  1. Post-Occupancy Agreement:
  • Following the sale, CTD Holdings entered into a Post-Occupancy Agreement allowing them to continue occupying the sold property until January 15, 2017, for a nominal fee of $1.00. The company anticipates negotiating a lease for a portion of the property before this date.

Conclusion:

CTD Holdings, Inc. executed a significant asset sale, which facilitated debt repayment and provided liquidity for operational needs. The ability to continue occupying the premises under a post-occupancy agreement indicates a strategic transition as the company adapts to this change in its asset base. This report serves as a crucial update on the company's financial maneuvers and future operational plans.