ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On May 28, 2014, Andrew Liu & Co Ltd ("ALC"), a wholly subsidiary of ALCO, Inc.
(the "Company"), entered into an agreement with a party ("Seller"), which is not
affiliated with ALC, the Company, or its advisor or affiliates. Pursuant to the
terms of the agreement of purchase and sale (the "Purchase Agreement"), the
Company, through ALC, agreed to purchase a condominium unit consisting of 1204
square feet located in 52 East End Avenue, New York, United States ("the
Property") for a gross purchase price of US$1.665 million, exclusive of closing
costs. Pursuant to the terms of the Purchase Agreement, subject to certain
conditions, the closing for the acquisition of the Property is scheduled to
occur on or about July 22, 2014. Upon the execution of the Purchase Agreement
ALC paid a US$166,500 deposit, which is non-refundable to the Seller, and the
balance of US$1,498,500 will be due upon the closing of the acquisition. The
Property was constructed in 1987 and will be 100% used by the Company as
Director's accommodation in United States. In addition, the Company, through
ALC, intends to hold the Property for long-term investment purpose. A copy of
the Purchase Agreement is filed as an exhibit to this Form 8-K.
ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
The information set forth under Item 1.01 of this current report on Form 8-K in
reference to the Property is hereby incorporated by reference into this Item
The Company, through its wholly-owned subsidiary ALC, entered into the Purchase
Agreement for the acquisition of the Property from the Seller on May 28, 2014.
The closing under the Purchase Agreement is scheduled to occur on or about July
22, 2014. The purchase of the Property is being funded by the internal fund of
the Company. In evaluating the Property as a potential acquisition, including
the determination of an appropriate purchase price, the Company considered a
variety of factors, including the local property market condition, potential
future capital gain, location, visibility and access, and physical condition of
the Property. There is a plan for renovation of the Property but the details
have not been determined yet. The Company believes the Property is adequately
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN
OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
Except the gross purchase price mentioned in Item 1.01 of this Current Report on
Form 8-K, there is no financial obligation or obligation under an off-balance
sheet arrangement of the Company is created.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
The exhibits listed below are filed as part of this Current Report on Form 8-K:
Agreement of purchase and sale dated May 28, 2014 for the Property between
Andrew Liu & Co Ltd and the Seller.
- 2 -