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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): October 7, 2021
 
CEN BIOTECH, INC.
(Exact name of registrant as specified in its charter)
 
Ontario, Canada
000-55557
-
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(I.R.S. Employer Identification Number)
 
300-3295 Quality Way
Windsor, Ontario
Canada
N8T 3R9
(Address of principal executive offices, including zip code)
 
(519) 419-4958
(Registrant’s telephone number, including area code)
 
Not applicable.
(Former name or former address, if changed since last report)
 
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
  None   N/A   N/A
 
☑
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).
 
 
☐
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.
 
The disclosures in Item 2.01 of this Current Report on Form 8-K are incorporated by reference into this Item 1.01.
 
Item 2.01 Completion of Acquisition or Disposition of Assets.
 
On October 7, 2021 (“Closing Date”), CEN Biotech, Inc. a corporation incorporated under the laws of Canada operating in the Province of Ontario (the “Company”) entered into and closed on a definitive agreement with Tesla Digital Inc., an Ontario, Canada corporation, Tesla Digital Global Group, Inc., an Ontario, Canada corporation, as well as Steven Pokrajac individually (together, the “Sellers”), pursuant to which the parties agreed to the sale and assignment of certain assets of the Sellers (the “Purchased Assets”) related to a Light Emitting Diode Driver Circuit, as more specifically set forth in the Asset Purchase Agreement, Patent Assignment and Bill of Sale (together, the “Transaction Documents”) attached hereto as Exhibit 10.1, Exhibit 10.2 and Exhibit 10.3, respectively. The Company and Sellers may be referenced hereafter as the “Parties”.
 
 
 
 
Pursuant to the Transaction Documents, the Company agreed to complete the purchase, acquisition and acceptance from the Sellers of the Purchased Assets, which include all of the Sellers’ right, title, and interest in and to United States patent number U.S. 8723,425 (the “Patent”), in and to the inventions therein set forth and any reissue, reexamination, renewal, divisional, or continuation thereof, in addition to, any related manufacturing machinery plus inventory on hand, and all know-how pertaining to manufacture, use, operation maintenance, development, enjoyment and exploitation of the Patent and the related manufacturing machinery (the “Property”).
 
U.S. Patent
Application No.
Application
Filing Date
Status
U.S.
Patent
No.
Issue
Date
Subject Matter
13/525,703
06/18/2012
Issued U.S. Patent
8,723,425
05/13/2014
Light Emitting Diode Driver Circuit
 
The Sellers cooperated with the Company to perfect the sale and assignment of the Patent and Property, including through execution of the Patent Assignment and recordation of the same with the U.S. Patent Office, on October 7, 2021.
 
As consideration for the sale, assignment and transfer of the Purchased Assets (the “Tesla Digital Transaction”), on the Closing Date the Company agreed to pay to the Sellers (i) 5,000,000 shares of the Company’s Common Stock, at no par value per share (the “Shares”), (ii) that parcel of real property known as 1517-1525 Ride Road, Essex, Ontario (Canada), further detailed in Exhibit 10.1, which the Parties acknowledged has already been satisfactorily tendered by Company to Sellers with assumption of mortgage, and (iii) that parcel of real property known as 135 North Rear Road, Town of Lakeshore, Ontario (Canada), further detailed in Exhibit 10.1, which the Parties acknowledged has already been satisfactorily tendered by Company to Sellers with assumption of mortgage.
 
Pursuant to notice given to its current transfer agent on Closing Date, the Company has authorized and instructed transfer agent to reserve the Shares of the Company for issuance upon the written request of any of the Sellers in accordance with the terms therein and following written confirmation by the Company. The Shares shall be issued to Stevan Pokrajac, In Trust.
 
The Transaction Documents are the definitive agreements between the Company and Sellers, following a Sale Purchase Agreement for the sale of certain assets, properties and rights dated August 31, 2016, as well as its Amending Agreements dated March 29, 2018, September 30, 2018, April 3, 2019 and March 16, 2020.
 
The foregoing description of the Transaction Documents does not purport to be complete and is qualified in its entirety by reference to the Transaction Documents, which are filed herewith as Exhibit 10.1, Exhibit 10.2 and Exhibit 10.3 to this Current Report on Form 8-K and are incorporated herein by reference.
 
Item 3.02 Unregistered Sales of Equity Securities.
 
The disclosures in Item 2.01 of this Current Report on Form 8-K are incorporated by reference into this Item 3.02. The issuance of the Shares described in Item 1.01 was made in reliance on the exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Act”), in reliance upon exemptions from the registration requirements of the Act in transactions not involving a public offering.
 
Item 7.01 Regulation FD Disclosure.
 
On October 13, 2021, the Company issued a press release (the “Press Release”) announcing the closing, and also stating that the Company is seeking to continue expanding its LED lighting division. The Press Release is furnished hereto as Exhibit 99.1 and is incorporated by reference herein.
 
The information contained in the Press Release is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits.
 
The exhibits listed in the following Exhibit Index are filed as part of this Current Report on Form 8-K. 
 
Exhibit
No.
 
Description
10.1*
10.2*
10.3*
99.1**
104
 
Cover Page Interactive Data File (embedded within the Inline XBRL document)
 
*Filed herewith. 
**Furnished herewith.
 
 
 
 
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.
 
 
 
CEN Biotech, Inc.
   
   
Date: October 13, 2021
By:
/s/ Bahige Chaaban
   
Bahige Chaaban
   
Chief Executive Officer (principal
executive officer)
 
 

Exhibit 10.1

 

 

 

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Exhibit 10.3

 

 

 

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Exhibit 99.1

 

 

CEN Biotech Inc. Announces the Closing of LED Patent Acquisition

 

 

Windsor, ON – October 13, 2021 (Newswire)– CEN Biotech Inc. (“CEN” or the “Company”) (OTC Pink: CENBF), a global holding company focused on the manufacturing, production and development of LED lighting technology and hemp-based products intended to help improve your state of health and well-being, is pleased to announce that it is has consummated the transaction for Patent Number U.S. 8,723,425 (the “Patent”).

 

On October 7, 2021, CEN entered into an Asset Purchase Agreement (the “Agreement”) in connection with the purchase and acquisition of the right, title, and interest in and to the Patent, as more particularly described in the APA and related transaction documents. Pursuant to the Agreement, Tesla Digital, Inc., Tesla Digital Global Group, Inc. and Stevan Pokrajac (together, the “Sellers”) are to receive 5,000,000 shares of CEN common stock which were reserved for issuance at closing of the Agreement. As additional consideration, the Sellers acknowledged receipt of two parcels of real property from CEN.

 

“This strategic acquisition is the first step in creating a truly global agriculture company dedicated to a person’s health and well-being using innovations in LED lighting technologies. We believe the use of this LED patented technology can be widely implemented in many industries such as indoor growing, automotive and industrial applications. This technology can limit the amount of heat generated from the operation of the LED lights and the amount of power needed to operate them.” commented Bahige (Bill) Chaaban, the Company’s CEO and Executive Chairman.

 

The inventor of the Patent, Stevan Pokrajac, commented also, “We look forward to continuing the development and sales of our patented technology across a wide range of platforms and industries, including indoor agriculture applications, automotive and aerospace industries, and technologies that require minimal heat and power consumption.”

 

About CEN Biotech Inc.

 

CEN Biotech, Inc. is a global holding company focused on the manufacturing, production and development of LED lighting technology and hemp-based products. The Company intends to continue to explore the usage of hemp, which it now intends to cultivate for usage in industrial, medical and food products. For further information on the Company, please visit our website at www.cenbiotechinc.com. Information about the Company can also be found on the Securities and Exchange Commission’s EDGAR site under the Issuer Profile of “CEN Biotech Inc.”

 

 
 

 

Forward Looking Statements

 

This press release contains “forward-looking” statements. In particular, the words “believe,” “may,” “could,” “should,” “expect,” “anticipate,” “estimate,” “project,” “propose,” “plan,” “intend,” and similar conditional words and expressions are intended to identify forward-looking statements. Any statements made in this press release about an action, event or development, are forward-looking statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions, many of which may be beyond control of CEN Biotech Inc. (“CEN”), that could cause actual results to differ from those in the forward-looking statements. Accordingly, you should not place undue reliance on these forward-looking statements. Although CEN believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that its forward-looking statements will prove to be correct. Potential risks include such factors as the inability to enter into agreements with parties with whom we are in discussions, factors that cannot be predicted with certainty, as well as additional risks and uncertainties that are identified and described in CEN’s reports filed with the Securities and Exchange Commission (the “SEC”). Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. CEN does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement except as required in accordance with applicable laws.

 

Press Contact

 

Brian S. Payne

Vice President and Director

CEN Biotech Inc.

Phone: (519) 419-4958, Extension 1505

Email: brian@cenbiotechinc.com