UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): August 9, 2021
UFP TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware | 001-12648 | 04-2314970 |
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
100 Hale Street
Newburyport, Massachusetts 01950-3504
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (978) 352-2200
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 Act:
Title of each class | Trading Symbol(s) |
Name of each exchange on which
registered |
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Common stock | UFPT | The NASDAQ Stock Market L.L.C. |
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 August 9, 2021, UFP Technologies, Inc., a Delaware corporation (the “Company”), through Co-Production Tijuana, a third-party Mexican Shelter company (the “Shelter Company”), entered into a Lease Agreement (the “Lease”) with Via Capital (the “Landlord”) for manufacturing, storage and office space in Tijuana, Mexico. Although the Shelter Company is the tenant under the lease, the Company has signed a guarantee agreement effectively binding the Company to the terms of the Lease.
The initial term of the Lease commences upon the Landlord’s delivery of the Leased Premises in tenant improvement readiness condition (the “Commencement Date”), estimated to be December 31, 2021. The initial term of the Lease will extend approximately 122 months from the Commencement Date, unless earlier terminated in accordance with the Lease. The Company and/or the Shelter Company will have the right to extend the term of the Lease for two additional five-year terms.
Under the Lease, the Company will lease approximately 83,256 square feet. The Company will pay an escalating base rent over the life of the Lease of approximately $45,939 per month. In addition, the Company will pay its pro rata portion of property expenses and operating expenses for the Leased Premises.
The Company’s decision to establish manufacturing operations in Mexico was in response to requests from several of its key medical customers to offer a low-cost country manufacturing solution for their medical devices and components. The Company has pre-committed programs with three customers that will be manufactured in the new facility.
The foregoing description of the terms of the Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Lease, which is attached as Exhibit 10.1 to this Current Report on Form 8-K.
The representations, warranties and covenants contained in the Lease were made only for purposes of such agreements and as of specific dates, were solely for the benefit of the parties to these agreements, and may be subject to limitations agreed upon by the contracting parties. Accordingly, the Lease is incorporated herein by reference only to provide investors with information regarding the terms of such agreement, and not to provide investors with any other factual information regarding the Company or its business, and should be read in conjunction with the disclosures in the Company’s periodic reports and other filings with the Securities and Exchange Commission.
Item 2.03. | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information included in Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.03 of this Current Report on Form 8-K by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
SIGNATURES
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.
Dated: August 13, 2021 | UFP TECHNOLOGIES, INC. | ||
By: | /s/ Ronald J. Lataille | ||
Ronald J. Lataille, Chief Financial | |||
Officer and Senior Vice President |
Exhibit 10.1
LEASE AGREEMENT
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CONTRATO DE ARRENDAMIENTO |
LEASE AGREEMENT ENTERED INTO BY AND BETWEEN LOGISTICA INDUSTRIAL DE TIJUANA ESTE, S.A. DE C.V., REPRESENTED BY MR. CARLOS ALBERTO JARAMILLO SILVA, (HEREINAFTER REFERRED TO AS THE ¨LESSOR¨), AND BY CO PRODUCTION DE TIJUANA, S.A. DE C.V., REPRESENTED BY MR. ROMAN ALONSO CASO ESPINOSA (HEREINAFTER REFERRED TO AS THE “LESSEE”) AND BY UFP TECHNOLOGIES, INC. REPRESENTED IN THIS ACT BY Mr. MITCHELL C. ROCK (HEREINAFTER REFERRED TO AS THE “GUARANTOR”), AND JOINTLY REFERRED TO AS THE ¨PARTIES¨, PURSUANT TO THE FOLLOWING RECITALS AND CLAUSES: | CONTRATO DE ARRENDAMIENTO QUE CELEBRAN POR UNA PARTE, POR SU PROPIO DERECHO LOGISTICA INDUSTRIAL DE TIJUANA ESTE S.A. DE C.V., REPRESENTADA EN ESTE ACTO POR SU ADMINISTRADOR ÚNICO EL SEÑOR CARLOS ALBERTO JARAMILLO SILVA; (EN LO SUCESIVO DENOMINADO COMO EL “ARRENDADOR”) , Y POR LA OTRA CO PRODUCTION DE TIJUANA, S.A. DE C.V.,REPRESENTADA EN ESTE ACTO POR EL SR. ROMAN ALONSO CASO ESPINOSA (EN LO SUCESIVO DENOMINADO COMO EL “ARRENDATARIO”) , Y UFP TECHNOLOGIES, INC., REPRESENTADA EN ESTE ACTO POR EL SEÑOR MITCHELL C. ROCK (EN LO SUCESIVO DENOMINADO COMO EL “FIADOR”) , TODAS ELLAS REFERIDAS EN ADELANTE DE MANERA CONJUNTA COMO ¨LAS PARTES¨, QUIENES SE SUJETAN AL TENOR DE LAS DECLARACIONES Y CLÁUSULAS SIGUIENTES: |
R E P R E S E N T A T I O N S
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D E C L A R A C I O N E S |
I. The LESSOR, through its legal representative states that:
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I. EL ARRENDADOR, por conducto de su representante legal, declara que: |
a) It is duly incorporated under Mexican laws, as evidenced by Public Instrument number 31691 (thirty one thousand six hundred ninety one) Volume number 94 (ninety four), dated October 23, 2017, granted before Mr. Jose Manuel Magallón Osuna, Notary Public number 147, domiciled in the City of Mazatlán, Sinaloa, México, which is registered in the Public Registry of Property and Commerce in the city of Mazatlán, Sinaloa, Mexico, under Folio Mercantil number 2017096545, dated December 1, 2017, same that is attached to this document as Exhibit “A”, which forms an integral part of this Agreement. |
a) Se encuentra debidamente constituida conforme a las leyes mexicanas, según lo acredita mediante Escritura Publica número 31691 (treinta y un mil seiscientos noventa y uno) Volumen XCIV (nonagésimo cuarto) , Libro 1 (uno) de fecha 23 de Octubre de 2017, pasada ante la fe del Lic. José Manuel Magallón Osuna, Notario Público número 147, con residencia en la Ciudad de Mazatlán, Sinaloa, México, la cual se encuentra inscrita en el Registro Público de la Propiedad y de Comercio en la Ciudad de Mazatlán, Sinaloa, México, bajo Folio Mercantil Electrónico número 2017096545, de fecha 1 de Diciembre de 2017, mismo que se agrega en copia al presente como Anexo “A”, que forma parte integral del presente Contrato.
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a) It is a commercial corporation validly constituted and legally existing under the laws of Delaware, United States of America, as evidenced in the authentication Certificate of Good Standing which copy is attached hereto as Exhibit "I” that is an integral part of this Agreement.
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a) Es una sociedad mercantil válidamente constituida y legalmente existente al amparo de las leyes del Estado de Delaware, los Estados Unidos de América, según consta en el certificado de cumplimiento y copia se agrega al presente como Anexo “I, y que forma parte integral del presente contrato.
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b) The representative has sufficient and necessary powers to bind it to the faithful fulfillment of all the conditions of this Contract; manifesting UNDER PROTEST TO SAY TRUTH that to date, these powers have not been revoked or limited by the legal entity they represent.
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b) Su representante cuenta con las facultades suficientes y necesarias para obligarla al fiel cumplimiento de todas las condiciones de este Contrato; manifestando BAJO PROTESTA DE DECIR VERDAD que a la fecha, dichas facultades no le han sido revocadas o limitadas por la persona moral a la que representa.
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c) It has a business relationship with the LESSEE; and therefore, it is interested in guaranteeing LESSEE’s obligations pursuant to this Agreement. |
c) Tiene una relación de negocios con el ARRENDATARIO y por ende tiene interés en garantizar las obligaciones del mismo conforme a este Contrato.
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d) Acknowledges that the LESSOR may not have entered into this Agreement without the GUARANTOR guaranteeing the obligations of the Tenant pursuant to the terms set forth in this Agreement.
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d) Reconoce que el ARRENDADOR podría no haber celebrado este Contrato si el FIADOR no hubiera garantizado las obligaciones del ARRENDATARIO conforme a los términos de este Contrato. |
e) The execution, delivery and fulfillment of this Agreement by GUARANTOR, are allowed by its corporate purpose, and have been duly authorized by all the necessary corporate acts, and do not violates, contravenes or breaches: (1) its current by-laws, or (2) any law or contractual restriction binding or affecting it. |
e) La celebración, entrega y cumplimiento del presente Contrato por parte del FIADOR, están comprendidos dentro de su objeto social, y han sido debidamente autorizadas por todos los actos corporativos necesarios, y no viola, contraviene o incumple: (1) sus estatutos sociales vigentes, o (2) ley o restricción contractual alguna que le obligue o afecte.
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f) No authorization nor approval from, nor any action by, nor is any notice or registration required before any person, corporate entity, governmental authority or regulating agency for the execution, delivery and fulfillment this Agreement by GUARANTOR, other than those approvals, actions, notices or registrations obtained or made prior to the execution of this Agreement. |
f) No se requiere autorización o aprobación de, ni se requiere de cualquier otro acto por parte de, y no se requiere notificar o registrar ante, cualquier persona, órgano corporativo, autoridad gubernamental o agencia regulatoria alguna para la debida celebración, entrega y cumplimiento del presente Contrato por parte del FIADOR, salvo por aquellas autorizaciones, aprobaciones, notificaciones o registros obtenidos o realizados con anterioridad a la firma del presente Contrato.
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1.1. The PARTIES agree that the purpose of this Agreement, is precisely the LEASE of the LEASED PROPERTY. For such purpose, the LESSOR agrees to grant in LEASE to the LESSEE, and the latter agrees to receive in LEASE the LEASED PROPERTY, as such property has been described in paragraph g) of Section I of the Representations of this Agreement. |
1.1. Las PARTES acuerdan que el objeto del presente Contrato, es precisamente el ARRENDAMIENTO del INMUEBLE ARRENDADO, por lo anterior, en este acto el ARRENDADOR se obliga a dar en ARRENDAMIENTO al ARRENDATARIO, y este último se obliga a tomar en ARRENDAMIENTO el INMUEBLE ARRENDADO, como dicho inmueble ha sido descrito en el inciso g) del numeral I del apartado de Declaraciones del presente Contrato.
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3.6. On the Final Delivery Date, or any previous date on which the LESSOR has finished the Industrial Building that will be part of the LEASED PROPERTY and with the agreement of LESSEE, the LESSOR will deliver a written notification to the LESSEE and the GUARANTOR at least 5 (five) business days in advance, and the parties shall get together at the LEASED PROPERTY, with the purpose of inspect the LEASED PROPERTY and the specific technical works requested and described in Annex "D", and to sign a Delivery Certificate in which in any case must be included: (a) a description of the LEASED PROPERTY and the works carried out, (b) a photographic memory of the LEASED PROPERTY, (c) the take over of the LEASED PROPERTY by the LESSEE and (d) those other matters related to the delivery of the LEASED PROPERTY that the parties agree to include in said Delivery Certificate |
3.6 En la Fecha de Entrega Final o en aquella otra fecha anterior en que el ARRENDADOR haya concluido la Nave Industrial que integrará al INMUEBLE ARRENDADO y con el contrato de arrendamiento, el ARRENDADOR notificará por escrito al ARRENDATARIO y al FIADOR con por lo menos 5 (cinco) días hábiles de anticipación, y las partes deberán reunirse en el INMUEBLE ARRENDADO, con el propósito de inspeccionar el INMUEBLE ARRENDADO y las obras técnicas específicas solicitadas y descritas en el Anexo “D”, y para suscribir un Acta de Entrega en la que en todo caso habrán de incluirse: (a) una descripción del INMUEBLE ARRENDADO y de las obras realizadas, (b) una memoria fotográfica del INMUEBLE ARRENDADO, (c) la toma de posesión del INMUEBLE ARRENDADO por el ARRENDATARIO y (d) aquellos otros asuntos que relacionados con la entrega del INMUEBLE ARRENDADO que las partes acuerden incluir en dicha acta de entrega.
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The date of the Delivery Certificate will serve to indicate the starting day of the term of the lease contract described in clause 7.1 of this contract.
The LESSEE will start paying rent 2 months after the Final Delivery Date indicated in the present clause. |
La fecha del Acta de entrega servirá para indicar el día de inicio del término del contrato de arrendamiento descrito en cláusula 7.1 del presente contrato. De la misma manera la fecha de pago efectivo de renta por el ARRENDATARIO sera 2 meses calendario posteriores a la fecha de entrega final establecida acorde a la presente clausula. |
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20.2 .THE LESSEE must deliver to the LESSOR (i) proof that all the utilities of the LEASED PROPERTY have been duly paid until the date of termination of this Contract; (ii) filing of Abandonment of Site to the Secretary of Environmental Protection of Baja California if such certificate is required; (iii) an environmental study of the LEASED Property known as “Phase 1”, carried out by a prestigious environmental consulting firm, duly authorized by the Mexican environmental authorities, if applicable, that demonstrates that the LEASED Property is in the same or reasonably equivalent state in which it was received, according to Phase 1, and only in case of being necessary or required by Phase 1, an environmental study of the Phase II site; LESSEE shall not assume any liability relating to, or be liable to remedy Contamination caused off-site or by any third party. |
20.2 EL ARRENDATARIO deberá entregar al ARRENDADOR (i) constancia de que todos los servicios públicos del INMUEBLE ARRENDADO han sido debidamente pagados hasta la fecha de terminación del presente Contrato; (ii) certificado de Abandono de Sitio expedido por la Secretaría de Protección al Ambiente de Baja California, si dicho certificado resultare requerido; (iii) un estudio ambiental de la Propiedad ARRENDADA conocido como “Fase 1”, realizado por una firma de consultoría ambiental de prestigio, debidamente autorizada por las autoridades ambientales mexicanas en caso de ser aplicable, que demuestre que el INMUEBLE ARRENDADO se encuentra en el mismo estado en el que se recibió o en un estado razonablemente equivalente, conforme al Fase 1, y solo en caso de ser necesario o sea requerido por el Fase 1, un estudio ambiental de sitio de Fase II; el ARRENDATARIO no asumirá cualquier responsabilidad respecto a, o será responsable para remediar la Contaminación causada fuera de sitio o por un tercero.
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TWENTY FOURTH.- ENTIRE AGREEMENT. |
VIGÉSIMA CUARTA.- TOTALIDAD DEL CONTRATO.
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Consequently, derived from the foregoing, the PARTIES sign this Agreement in the city of Tijuana, Baja California, on August ____ 2021. |
Consecuentemente derivado de lo anterior, las PARTES firman el presente Contrato en la ciudad de Tijuana, Baja California, el día ________ de Agosto de 2021.
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EL FIADOR
THE GUARANTOR
UFP TECHNOLOGIES INC.,
POR/BY: Mitchell C. Rock
REPRESENTANTE LEGAL / LEGAL REPRESENTATIVE
LIST OF EXHIBITS / LISTA DE ANEXOS
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Exhibit “Q” | Rules and specifications to place the logo of the LESSEE. | Anexo “Q” | Reglas y especificaciones para colocar logotipo en fachada |
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