Company: OMQS
Filing Date: 2025-07-16
Form Type: 8-K
Source: 0001641172-25-019910
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Company: OMNIQ Corp.
Filing Date: 2025-07-16
Form: 8-K
Item: Item 1.01
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Item
1.01. Entry into a Material Definitive Agreement.

On
July 11, 2025, OmniQ Corp., a Delaware corporation (the “ Company”), together with its subsidiaries, Quest Marketing, Inc.,
HTS Image Processing, Inc., OmniQ Vision Inc., HTS Image Ltd., OmniQ Technologies Ltd., and Dangot Computers, Ltd. (collectively, the
“ Sellers”), entered into an Asset Purchase Agreement (the “ Purchase Agreement”) with Summit Junction Holdings
LLC, a Delaware limited liability company (the “ Buyer”).

Pursuant
to the Purchase Agreement, the Sellers agreed to sell, and Buyer agreed to purchase, substantially all of the assets and assume certain
liabilities mainly associated with the Company’s legacy business line, including its integrated hardware, software,
and automation solutions business, (the “ Transferred Business”). The Transaction was consummated on July 11, 2025. Although
the Purchase Agreement is dated as of June 30, 2025, the parties executed the agreement and consummated the Transaction on July 11, 2025.

The
aggregate consideration for the Transaction is approximately $45.0 million, consisting of the assumption by Buyer of up to $55.0
million in specified liabilities of the Transferred Business and the issuance by the Company of a Promissory Note in the principal
amount of $10.0 million in favor of the Buyer. The Promissory Note bears interest at 5% per annum, is amortized over a ten-year
period, and provides for a balloon payment after the third year. In addition, the Company is entitled to a contingent payment of up to
$10.0 million in the event that, within 18 months following the closing, Buyer either (i) consummates a sale of all or substantially
all of its assets or equity for consideration in excess of $100.0 million or (ii) completes an initial public offering at a valuation
exceeding $100.0 million.

The
assets sold include, among other things, accounts receivable, inventory, tangible personal property, intellectual property, contract
rights, books and records, and other assets used or held for use in connection with the Transferred Business. Certain assets were excluded
from the Transaction, including the Company’s cash and cash equivalents and all assets not related to the Transferred Business.
Buyer assumed only those liabilities specified in the Purchase Agreement, and the Company retained all other liabilities,