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): October 4, 2006
UTG, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-16867 20-2907892
(State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation or organization)
5250 South Sixth Street
Springfield, Illinois 62703
(Address of principal executive offices and zip code)
(217) 241-6300
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2):
Written communications pursuant to Rule 425 under the Securities Act
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
Section 1 - Registrant's Business and Operations
Item 1.01. Entry into a Material Definitive Agreement
On October 2, 2006, UTG, Inc.'s 100% owned subsidiary, Universal Guaranty Life
Insurance Company ("UG"), entered into a Real Estate Purchase and Sale Agreement
for the sale of real estate currently owned. The sale is expected to close by
May 31, 2007 and is contingent upon buyer's inspection period.
UG is a 100% owned subsidiary of UTG, Inc., which owns for investment purposes,
a property consisting of a 107,602 square foot, four-story building and 6,897
square foot attached supporting services building, totaling 114,499 square feet,
in Springfield, Illinois.
The total sale price of the property is $ 3,300,000, with $ 100,000 earnest
money due within five days of the execution of the real estate purchase and sale
agreement and the balance paid at the closing of the sale. Beginning October 2,
2006 and continuing for two hundred and ten days thereafter, an inspection
period commences which allows the buyer to inspect the property and conduct
feasibility studies to determine if the property is suitable for the buyer's
intended use. If the buyer terminates the agreement during the first thirty days
of the inspection period, the earnest money is refunded to the buyer. If the
agreement is terminated after thirty days, but before the one hundred and
twenty-one days, half of the earnest money is refunded to the buyer. If the
buyer terminates the agreement after one hundred and twenty days, the sum total
of the earnest money shall be paid to the Company.
Should the sale be consummated, the Company will record a realized gain, net of
taxes, of approximately $ 2,100,000, or $ 0.54 per common share outstanding.
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.
UTG, INC.
Date: October 4, 2006 By: /s/ Theodore C. Miller
Theodore C. Miller
Senior Vice President and Chief Financial Officer
