Bulova Technologies Group, Inc. News

BULOVA TECHNOLOGIES GROUP, INC. Files SEC form 8-K, Entry into a Material Definitive Agreement, Financial Statements August 21 - EDGAR Online

ITEM 1.01 Entry into a Material Definitive Agreement.

Bulova Technologies Ordnance Systems LLC, a wholly owned subsidiary of Bulova Technologies Group, Inc. (the "Company") entered into an Asset Purchase Agreement and a Commercial Real Estate Contract dated August 17, 2012 to dispose of substantially all of its assets with the following material items:

1. A sales price of $11,200,000
2. The payment of the sales price will consist of the assumption of certain liabilities, a cash payment of approximately $6,600,000, and a note receivable from the buyer of approximately $3,605,398.
3. The note receivable will bear interest at the rate of 8% per annum with payments of approximately $34,455 monthly with the full unpaid balance due two years after the closing date, which is expected to be on, or about August 30, 2012, but not later than September 20, 2012.
4. The note receivable will be secured by a first mortgage position on the real estate conveyed, and a first lien security interest on the personal property conveyed.
5. The assets being sold consist of all those assets and properties which are used in or pertaining to the defense contracting business operations of this subsidiary, including the real estate related thereto at 125 SE Swisher Road, Mayo, Florida 32066, as well as certain government contracts.
6. The buyer is an independent third party and has no prior relationship to the Company and / or its officers.
7. The buyer has a two week due diligence period from the signing of these contracts to cancel at buyer's discretion.

The transaction will be included in the Company's preliminary 14C - Information Statement

The foregoing does not constitute a complete summary of the terms of the Asset Purchase Agreement or the Commercial Real Estate Contract, and reference is made to the complete text of these documents which are attached hereto as Exhibits 10.1 and 10.2 and incorporated by reference herein.

ITEM 9.01 Financial Statements and Exhibits

(d) - Exhibits

10.1 Asset Purchase Agreement dated August 17, 2012 between Bulova Technologies Ordnance Systems LLC and L.C. Bowman, and/or Assigns

10.2 Commercial Real Estate Contract dated August 17, 2012 between Bulova Technologies Ordnance Systems LLC and LCB Properties, LLC

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