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CTD Holdings Secures Headquarters: $471K Acquisition of NanoSonic Property

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Form 8-K
Filed on: 2010-09-17
Source
CTD Holdings Secures Headquarters: $471K Acquisition of NanoSonic Property

Key Information from the SEC Filing (Form 8-K)

Company Overview:

  • Company Name: CTD Holdings, Inc.
  • State of Incorporation: Florida
  • Commission File Number: 000-30451
  • I.R.S. Employer Identification No.: 59-3029743
  • Principal Executive Offices Address: 27317 N.W. 78th Avenue, High Springs, FL 32643
  • Telephone Number: (386) 454-0887

Event Date:

  • Date of Report: August 12, 2010

Material Definitive Agreement (Item 1.01):

  • Acquisition Details:
  • Subsidiary Involved: NanoSonic Products, Inc. (NSP), a wholly-owned subsidiary of CTD Holdings, Inc.
  • Property Acquired: Real property with two vacant buildings totaling 6,280 square feet located at 14120 N.W. 126th Terrace, Alachua, Florida.
  • Acquisition Date: Completed on September 15, 2010.
  • Purchase Price: $471,600, which includes:
    • $468,000 paid to the Sellers for the property.
    • $3,600 in acquisition-related transaction costs.
  • Funding Source: The acquisition was funded through a loan from the Sellers.

Financial Obligation (Item 2.03):

  • Loan Details:
  • Loan Amount: $440,000 borrowed from the Sellers.
  • Maturity Date: September 15, 2015.
  • Interest Rate: 5.375% per annum.
  • Payment Structure:
    • Monthly installments of accrued interest: $750 for the first three months.
    • Monthly installments of principal and accrued interest: $2,995.73 from January 1, 2011, to August 1, 2015.
    • Final balloon payment of principal and accrued interest: $376,610 on September 15, 2015.
  • Prepayment: The loan may be prepaid without penalty.
  • Security: The loan is secured by a mortgage on the property, which includes a first priority lien on the real and personal property and a pledge of all income derived from the property.

Additional Notes:

  • The acquisition aligns with NSP's strategic intentions to utilize the property as its corporate headquarters and manufacturing and distribution center.
  • The terms of the loan and mortgage will be detailed in the attached exhibits (Exhibits 10.1, 10.2, and 10.3).

Exhibits:

  • Exhibit 10.1: Commercial Contract dated August 12, 2010.
  • Exhibit 10.2: Mortgage Note dated September 15, 2010.
  • Exhibit 10.3: Mortgage Deed dated September 15, 2010.

Conclusion:

This filing reflects CTD Holdings, Inc.'s strategic acquisition of property to support its operational needs, alongside details about the financing structure that will impact its financial obligations in the coming years. The loan's terms suggest a manageable payment schedule, but with a significant balloon payment due at maturity.