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): September 19, 2012
CTI INDUSTRIES CORPORATION
(Exact name of registrant as specified in its charter)
| Illinois | 0-23115 | 36-2848943 |
| (State or other jurisdiction | (Commission | (IRS Employer |
| of incorporation) | File Number) | Identification No.) |
| 22160 North Pepper Road, Lake Barrington, IL | 60010 |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code (847) 382-1000
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K 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 (17CFR 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))
Item No. 1.01 – Entry in to a Material Definitive Agreement
On September 19, 2012, Registrant entered into a Lease agreement under which Registrant agreed to lease approximately 116,000 square feet of warehouse and office space in Lake Zurich, Illinois, of which approximately 98,000 square feet consists of warehouse space. The Lease is to commence on November 1, 2012 and expires on February 28, 2017. The Lease provides for base rental payments of (i) $25,000.00 per month commencing on March 1, 2013 through October 31, 2013, (ii) $27,708.33 per month commencing on November 1, 2013 through October 31, 2014, (iii) $30,416.67 per month commencing on November 1, 2014 through October 31, 2015, (iv) $33,125.00 per month commencing on November 1, 2015 through October 31, 2016 and (v) 35,833.33 per month commencing on November 1, 2016 through February 28, 2017. In addition to the base rental payments, Registrant will be obligated to pay, each month during the term, an amount equal to one twelfth of the estimated annual real estate taxes on the property and will also pay all utilities charges and maintenance costs with respect to the building during the term.
The Lease includes an option of Registrant to extend the lease from March 1, 2017 to February 29, 2020.
Registrant presently intends to utilize the premises to warehouse principally finished goods and to conduct balloon inflation operations and to utilize portions of the office space for customer service and warehouse operations.
On September 21, 2012, Registrant issued a press release relating to the Lease a copy of which is attached hereto as Exhibit 99.1.
Item No. 9.01 – Exhibit
The following exhibit are attached hereto:
| Exhibit No. | Exhibit | |
| 99.1 | Press Release dated September 21, 2012, captioned: “CTI Industries Corporation Leases Expanded Facilities.” |
| 2 |
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.
| CTI Industries Corporation | ||
| (Registrant) | ||
| Date: September 21, 2012 | By: | /s/ Stephen M. Merrick |
| Stephen M. Merrick Executive Vice President | ||
| 3 |
EXHIBIT INDEX
| Exhibit No. | Description |
| 99.1 | Press Release dated September 21, 2012, captioned: “CTI Industries Corporation Leases Expanded Facilities.” |
| 4 |
EXHIBIT 99.1
NEWS RELEASE
FOR FURTHER INFORMATION CONTACT:
| Stephen M. Merrick | |
| Executive Vice President | Investor Relations |
| (847) 382-1000 | (847) 620-1330 |
CTI Industries Corporation Leases
Expanded Facilities
FOR IMMEDIATE RELEASE
Friday, September 21, 2012
LAKE BARRINGTON, IL, September 21, 2012 -- CTI Industries Corporation (NASDAQ Capital Market - CTIB), a manufacturer and marketer of home storage pouches and systems, foil balloons, latex balloons, novelty items and printed and laminated films, today announced that the company has entered into a four and one-half year lease of expanded facilities for its warehouse, fulfillment and operations functions. The facility, encompassing approximately 116,000 square feet of warehouse and office space is located in Lake Zurich, Illinois, approximately 6 miles from its principal plant and offices in Lake Barrington, Illinois. The facility will replace current warehouse locations comprising about 55,000 square feet with lease terms expiring on December 31, 2012.
The newly-leased facility will provide additional warehouse space to accommodate increased inventory levels and fulfillment activities related both to CTI’s consumer storage product lines and its novelty balloon product lines. CTI will also conduct balloon inflation operations at the facility and will utilize the office areas for customer service, fulfillment and warehouse management operations.
* * * *
CTI Industries is one of the leading manufacturers and marketers of metallized and latex balloons, develops, produces and markets bags and pouches for home storage and for packaging applications and produces laminated and printed films for commercial uses. CTI markets its products throughout the United States and in a number of other countries.
This press release may contain forward-looking statements within the meaning of Section 17A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including (i) the risks of generating and maintaining sales in a highly competitive market, (ii) the ability of the Company to enter into or maintain contracts or relationships with customers, distributors, licensors and suppliers, (iii) manufacturing risks, as well as other risks and uncertainties reported by the Company in its SEC filings, and such statements should also be considered in conjunction with cautionary statements contained in the Company’s most recent filing with the Securities and Exchange Commission on Forms 10-K and 10-Q.