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 15, 2008
SCOTT'S LIQUID GOLD-INC.
(Exact name of Registrant as specified in its charter)
Colorado 001-13458 84-0920811
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
4880 Havana Street, Denver, CO 80239
(Address of principal executive offices) (Zip Code)
Registrant's telephone number: (303) 373-4860
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 (17 CFR 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 1.01 Entry into a Material Definitive Agreement.
Scott's Liquid Gold-Inc. (the "Company") owns approximately 5.5 acres
of vacant land north and adjacent to the Company's facilities in Denver,
Colorado. On September 15, 2008, the Company entered into a purchase
agreement with an unrelated party providing for the sale of the vacant
land for $1,209,661 in cash. After real estate commissions and other
expenses, the Company anticipates that this price would result in net
proceeds of approximately $1,100,000. The sale of the land is subject
to a number of conditions, including the purchaser's satisfaction with
its due diligence investigation of the property to determine in the
opinion of the purchaser whether the property is suitable for the
purchaser's intended use. The purchaser has 60 days from September 15,
2008 to complete its due diligence investigation. The closing of the
sale of the land is to take place within 15 days after the expiration
of this due diligence period.
The land is part of the collateral for the Company's loan with Citywide
Banks. That loan is secured by the land, building and fixtures at the
Company's Denver, Colorado facilities. The current outstanding amount
of the Bank loan is approximately $4,730,000. The Bank has approved of
the sale of the vacant land free of the Bank's lien based on:
. The proposed sale resulting in net proceeds of approximately
$1,100,000;
. the immediate principal reduction at the time of the sale in
the amount of $700,000; and
. the placement of the balance of the proceeds, estimated at
approximately $400,000, in a reserve account to be applied to
future monthly principal and interest payments on the Bank loan.
The $400,000 reserve benefits the Company's cash flow by its use
to make required monthly payments.
The Company's other real property continues to be listed for sale, lease
or a combination of the foregoing. The Company is also exploring the
possibility of a financing to raise capital. One source under
consideration is a line of credit. The Bank has stated that it will not
stand in the way of the Company's obtaining outside financing for a
$1,200,000 line of credit secured by accounts receivable and inventory.
However, there is currently no agreement for, and no assurance of,
any such financing.
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.
SCOTT'S LIQUID GOLD-INC.
(Registrant)
Date: September 15, 2008 /s/ Jeffry B. Johnson
----------------------------
By: Jeffry B. Johnson
Chief Financial Officer and
Treasurer