Sky Ranch
Effective July 30, 2010, we entered into a Loan Sale and Assignment Agreement to acquire loan instruments secured by approximately 940 acres of land known as Sky Ranch.
We acquired the promissory note payable by Sky Ranch, LLC (a wholly owned subsidiary of Neumann Homes, Inc,) and the deed of trust granted by Sky Ranch, LLC to secure the promissory note for cash payments totaling $7.0 million.
- On July 30, 2010, we made an escrow payment totaling $700,000.
- On October 18, 2010, we paid the balance of the acquisition price, or $6.3 million.
On October 26, 2010, pursuant to a motion we filed, the United States Bankruptcy Court, Northern District of Illinois, entered an order granting us the deeded title to the Sky Ranch property, free and clear of all bankruptcy claims. Pursuant to the order, effective November 2, 2010, we own the Sky Ranch property.
We financed this acquisition and raised additional general working capital by selling approximately $5.5 million of common stock and by issuing a $5.2 million Convertible Negotiable Note Payable (the "Note"). The stock sale and issuance of the Note are described in detail in Form 8-K filings made with the SEC on September 29, 2010 and October 7, 2010. Those filings are accessible by going to the Investor Relations page and clicking on the FOrm 8-K link under the SEC Filings section.
