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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):
June 8, 1998
JLM INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-22687 06-1163710
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(State or Other (Commission (I.R.S. Employer
Jurisdiction) File Number) Identification No.)
8675 Hidden River Parkway, Tampa, FL. 33637
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(Address of Principal Executive Office) (Zip Code)
(813) 632-3300
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(Registrant's telephone number, including area code)
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Item 2. Acquisition or Disposition of Assets
On June 8, 1998, JLM International, Inc, a wholly owned subsidiary of
JLM Industries, Inc. ("JLM" or the "Company"), entered into a Stock Purchase
Agreement (the "Agreement") with Mr. Jesus Herboso, a Spanish Citizen, whereby,
JLM will purchase 5,001shares, or 50.1%, of the outstanding common stock of
Inquinosa International, S.A. ("Inquinosa"), a Spanish company. Inquinosa is
headquartered in Madrid, Spain and has exclusive marketing rights to all lindane
produced at Oltchim S.A.'s, a Romanian chemical company, manufacturing facility
that is marketed outside of Romania. Lindane is a preferred seed-treating
pesticide that prevents insect damage during the critical pre-germination stage
for wheat, other grains and canola.
Under terms of a separate distribution agreement with Inquinosa, JLM
will have exclusive rights to market the pesticide Lindane in the United States
and Canada. The purchase price for the majority shares of Inquinosa from Mr.
Herbosa by JLM will be approximately $1.8 million, subject to adjustment, to be
funded through a four-year earn-out period as defined in the Agreement.
The continued sale of Lindane in the United States is dependent upon
the maintainence of a registration with the United States Environmental
Protection Agency ("EPA"). Inquinosa will fund the research required by the EPA
to keep the registration effective. Inquinosa will fund this research through
its membership in Central International D'Etudes du Lindane ("CIEL"). CIEL is a
not-for-profit organization that certifies the testing of lindane that is
mandated by the EPA and other worldwide governmental organizations. Currently,
Inquinosa is the only company that has agreed to fund the EPA-mandated testing
conducted by CIEL.
Item 7. Financial Statements and Exhibits.
1. Financial statements and exhibits filed herewith: None.
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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.
JLM INDUSTRIES, INC.
Dated: June 23, 1998
By: /s/ John L. Macdonald
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John L. Macdonald
President and Chief Executive Officer
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