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Note 14 - Subsequent Events
3 Months Ended
Mar. 31, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]

14. SUBSEQUENT EVENTS

 

Effective on May 1, 2022, Knitting Machinery Company of America LLC (“Knitting Machinery”), a Delaware limited liability company and indirect wholly-owned subsidiary of the Company, completed the acquisition (the “KMC Transaction,”) of substantially all the assets of KMC Corp. dba Knitting Machinery Corp. (KMC Corp.), a Delaware corporation and specialist in the manufacture of hose reinforcement machinery for the plastic, rubber and silicone industries (“KMC”), pursuant to an Asset Purchase Agreement entered into as of May 1, 2022 by and among Knitting Machinery, KMC, and Edward F. Crawford, Trustee of the Edward F. Crawford Second Restatement of Trust Dated March 2, 2001 (the “Equityholder” and with KMC, each a “Seller Party” and together the “Seller Parties”).

 

Knitting Machinery acquired the assets of KMC on a debt-free basis in exchange for $250,000 in chase (the "Cash Payment") and the issuance by the Company on behalf of Knitting Machinery a total of 38,462 of its Class A Common Shares (the "Shares") at an implied price of $26.00 per share to the Equityholer. The Cash Payment is subject to a total or partial refund to the extent KMC's earnings before interest, tax, depreciation and amortization (EBITDA) is not equal to or greater than the amount of the Cash Payment for the twelve-month period following the closing of the KMC Transaction.