Attached files
| file | filename |
|---|---|
| EX-99.1 - Superior Drilling Products, Inc. | ex99-1.htm |
| EX-10.1 - Superior Drilling Products, Inc. | ex10-1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
November 12, 2020
SUPERIOR DRILLING PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Utah (State of Incorporation) |
46-4341605 (I.R.S. Employer Identification No.) | |
1583 South 1700 East Vernal, Utah (Address of principal executive offices) |
84078 (Zip code) |
Commission File Number: 001-36453
Registrant’s telephone number, including area code: (435) 789-0594
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities Registered Pursuant to Section 12(b) of the Exchange Act:
| Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||
| Common Stock, $0.001 par value | SDPI | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Item 1.01. Entry into a Material Definitive Agreement.
On November 12, 2020, Superior Drilling Product, Inc. (the “Company”) entered into a sale-leaseback agreement for its headquarters and manufacturing facilities in Vernal, Utah. The transaction is subject to customary due diligence and the Company expects the transaction to close before year end.
Under the terms of the transaction, the Company will sell the property for $4.5 million and simultaneously enter into a 15-year lease. After fees, the Company is expected to net approximately $4.2 million in proceeds of which $2.5 million will be used to repay in full the outstanding mortgage on the property. Lease terms are for monthly payments that are $17 thousand less than current mortgage debt service.
The agreement includes customary representations, warranties, covenants and indemnities. The agreement can be terminated by the buyer for any reason during the 21 day buyer’s study and the earnest money deposit will be refunded to the buyer. If termination occurs after the 21 day buyer’s study and before closing, the earnest money deposit will not be refunded to the buyer.
Item 8.01 Other Events.
On November 12, 2020, the Company issued a press release announcing the sale-leaseback agreement. A copy of the press release is filed herewith as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
| Exhibit Number | Description | |
| 10.1 | Sale-leaseback agreement dated November 12 , 2020. | |
| 99.1 | Press release dated November 12, 2020 regarding sale-leaseback agreement. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 17, 2020
| SUPERIOR DRILLING PRODUCTS, INC. | |
| /s/ Christopher D. Cashion | |
| Christopher D. Cashion | |
| Chief Financial Officer |