false 0001042187 0001042187 2021-10-28 2021-10-28

 

 

 

 

 

Date of Report (Date of earliest event reported): October 28, 2021

 

(Exact name of registrant as specified in charter)

 

 

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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 (see General Instruction A.2. below):

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

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. ☐

 

 

 

 

As previously reported by the Company in its Current Report on Form 8-K dated August 5, 2021, on July 30, 2021, Yunhong CTI Ltd. (the “Company”) entered into an agreement (the “Agreement”) whereby it agreed to the redemption of all of its equity interests in Flexo Universal S DE RL DE CV, a Mexican corporation (“Flexo”), in a transaction whereby Kingman Distributions, S.A. DE C.V, a Mexican corporation (the “Buyer”), would become the majority owner of Flexo (the “Transaction”).

 

The Transaction closed on October 28, 2021. At Closing, Flexo purchased and redeemed all of the Company’s equity interests in Flexo in return for a purchase price of Five Hundred Thousand Dollars ($500,000), of which One Hundred Thousand Dollars ($100,000) was paid at the closing of the Transaction, and the remainder will be paid in installments over twelve months following the closing date (the “Installment Obligations”). The Installment Obligations are secured by a pledge of the assets of Flexo, as well as by guaranties provided by the Buyer and Pablo Gortazar, an individual with an ownership interest in Flexo, pursuant to a Guaranty and Security Agreement entered into among the Company, the Buyer, Flexo and Mr. Gortazar at the closing.

 

Please see Exhibit 10.1 to the Company’s Current Report on Form 8-K dated August 5, 2021 for a copy of Agreement. The foregoing summary of the terms of the Agreement is qualified in their entirety by reference thereto.

 

 

(d) Exhibits

 

The exhibit listed below is filed as an Exhibit to this Current Report on Form 8-K.

 

 

 

 

 

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 3, 2021