VirTra, Inc 8-K/A, filed Aug 30, 2021
VirTra, Inc (VTSI)
About this 8-K/A
VirTra, Inc filed this 8-K/A on August 30, 2021, reporting on events of August 25, 2021.
Items reported
- Item 2.01: Completed an acquisition or sale of assets
- Item 2.03: New debt or off-balance-sheet obligation
- Item 9.01: Financial statements and exhibits
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This amendment is being filed to remove two graphics which should not have been included as part of Exhibit 99.1
| Item 2.01 | Completion of Acquisition or Disposition of Assets. |
| Item 2.03 | Creation of Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
On August 25, 2021, the registrant completed the purchase (the “Acquisition”) of the real property located at 295 East Corporate Place in Chandler, Arizona (the “Property”) for $10,800,000 (the “Purchase Price”) pursuant to a purchase and sale agreement with Lot 9 LJana, LLC. The registrant paid the Purchase Price with cash and proceeds from a mortgage loan in the amount of $8,600,000.
The Property consists of approximately 4.3 acres and an industrial building of approximately 76,650 square feet. The board believes that this building allows for the registrant’s expected growth in simulator development and production, recoil kit development and production, training content creation as well as administrative, customer and technology support as the company plans to scale. Currently, the registrant has two locations in Tempe totaling approximately 42,860 square feet and instead of renting additional separate locations, the board of directors decided to purchase a new headquarters. Approximately 15,000 square feet of the new building will house two pre-existing tenants with multi-year rent agreements and VirTra has the sole option to cancel their leases with six months’ notice to one tenant and nine months’ notice to the other tenant. As one tenant is an IT company and the other tenant is a plastic injection molding company, the registrant is interested in doing business with both tenants. The registrant plans to fully move into the new space within nine months or less and plans to sub-lease its current lease spaces as soon as practical. Ultimately the registrant expects this purchase to result in spending less per month for facilities while having access to a larger and centralized facility to enhance efficiency.
The registrant obtained a mortgage loan from Arizona Bank & Trust (the “Lender”) in the amount of $8,600,000, evidenced by a promissory note (the “Note”), secured by a first priority lien on the Property pursuant to a deed of trust (the “Deed of Trust”) and assignment and assumption of leases for the benefit of the Lender.
The Note, together with accrued and unpaid interest, is due and payable on August 23, 2031 (the “Maturity Date”). Interest on the Note will accrue at the rate of 3.00% per annum. Monthly payments of $40,978.09 will be required beginning September 23, 2021, with a final balloon payment of $5,956,537.99 due August 23, 2031. If the Registrant prepays the Note within the first 5 years of the loan, a prepayment penalty will be due to the Lender.
The foregoing descriptions of the Note, Deed of Trust and Assignment and Assumption of Leases are qualified in their entirety by reference to the full text of the Note, Deed of Trust and Assignment and Assumption of Leases, which are incorporated by reference as exhibits 10.1, 10.2 and 10.3, respectively, hereto.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 10.1 | Promissory Note dated August 25, 2021 | |
| 10.2 | Deed of Trust dated August 25, 2021 | |
| 10.3 | Assignment and Assumption of Leases dated August 25, 2021 | |
| 99.1 | Press Release dated August 30, 2021 |
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.
| VIRTRA, INC. | ||
| Date: August 30, 2021 | By: | /s/ Robert D. Ferris |
| Name: | Robert D. Ferris | |
| Title: | Chief Executive Officer | |
Exhibit 10.1
Exhibit 10.2
Exhibit 10.3
Exhibit 99.1
VirTra Scales Manufacturing Capabilities with Purchase of Industrial Building in Chandler, Arizona
Building will Serve as Company’s New Headquarters Starting in 2022
TEMPE, Ariz. — August 30, 2021 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of training simulators for the law enforcement, military, educational and commercial markets, has acquired a property in Chandler, Arizona that consists of approximately 4.3 acres and an industrial building with approximately 76,650 square feet. VirTra acquired the property for $10.8 million, with $8.6 million being financed through a mortgage loan and the remainder being paid in cash.
The property gives VirTra a larger and more centralized facility to meet the anticipated growth in training simulator development and production, recoil kit development and production, training content creation and administrative functions. VirTra also expects the new building will provide greater operational efficiencies than its existing two leased locations in Tempe, Arizona with approximately 42,860 square feet in aggregate. VirTra plans to fully move into the new space within nine months or less and plans to sub-lease its current leased spaces once it has moved out.
“As demand for VirTra’s world-class training simulators in the law enforcement and military markets grows, it is critical that we scale our manufacturing and production capacity to meet not only the burgeoning demand today but the potential growth in the future as well,” said Chairman and Chief Executive Officer Bob Ferris. “This will be a state-of-the-art headquarters where we push the envelope of effective simulation training products for the benefit of our customers and stakeholders. The property will also allow us to centralize our operations and ultimately provide greater efficiencies across our entire organization.”
Additional details regarding the transaction are available in the company’s current report on Form 8-K, which has been filed with the U.S. Securities and Exchange Commission.
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship, and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
Forward-Looking Statements
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Investor Relations Contact:
Matt Glover
Gateway Group, Inc.
VTSI@gatewayir.com
949-574-3860