Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.22.1
Subsequent Events
6 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

12. Subsequent Events

 

On April 15, 2022, our subsidiary, BTU International, Inc. (“BTU”), entered into a Purchase and Sale Agreement (the “Purchase Agreement”) with Rhino Capital Advisors, LLC (“Buyer”) for the sale of BTU’s building in Billerica, Massachusetts (the “Property”), subject to the terms and conditions contained in the Purchase Agreement. The sale price for the Property is $21.5 million, $0.5 million of which was paid as a nonrefundable deposit, with the remainder due at closing. The Purchase Agreement contains representations, warranties and covenants customary for transactions of this type. Closing is tentatively set for June 21, 2022. Closing is subject to the execution of a leaseback of the premises. Terms of the leaseback are expected to include a base rent of $1.5 million per year in an absolute triple net lease for a two-year term. Based on a June 2022 closing date, we expect to recognize a gain on this transaction of approximately $11 million to $12 million, net of tax. We believe we will be able to utilize our net operating losses from a tax perspective, subject to an 80% federal limitation. Additionally, we expect a net cash inflow of approximately $15 million to $16 million, after repayment of the existing mortgage and settlement of related sale expenses.