Entry into a Material Definitive Agreement (form 8-K)

Aug 17, 2022 at 8:02 PM UTC · Issued by Chicago Rivet & Machine Co.

Item 1.01. Entry into a Material Definitive Agreement.

On August 12, 2022, Chicago Rivet & Machine Co. (the "Company") entered into a Purchase and Sale Agreement (the "PSA") with Frontenac Properties LLC (the "Purchaser") pursuant to which the Company has agreed, subject to the terms and conditions of the PSA, to sell its facility in Naperville, Illinois, in which the Company headquarters and warehouse space are located, to the Purchaser. The sale price for the property is $5,350,000 subject to certain adjustments as provided in the PSA. Consummation of the transaction is subject to inspection, title and other contingencies. Concurrently with the closing under the PSA, the Company and Purchaser are expected to enter into a lease agreement (the "Lease") pursuant to which the Company will lease the warehouse portion of the Naperville facility from the Purchaser until December 31, 2022 and the office portion until June 30, 2023. The monthly rent will be $12,500 for the period from the closing until December 31, 2022 and $8,500 for the period between December 31, 2022 and June 30, 2023.

This document contains certain "forward-looking statements" which are inherently subject to risks and uncertainties that may cause actual events to differ materially from those discussed herein. Factors which may cause such differences in events include, those disclosed under "Risk Factors" in our Annual Report on Form 10-K and in the other filings we make with the United States Securities and Exchange Commission. These factors, include among other things: the risk that the contingencies to the consummation of the transaction contemplated by the PSA may not be satisfied, the risk that the PSA may be terminated and the risk that the Company may otherwise be unable to sell its headquarters and warehouse facility on terms acceptable to the Company or at all. Many of these factors are beyond our ability to control or predict.

Readers are cautioned not to place undue reliance on these forward-looking statements. We undertake no obligation to publish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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