NeXovation, Inc. pays to extend period
The proposed buyer and seller of the Nashville Superspeedway agreed this week to again extend the purchase deadline to allow for additional research.
But it's going to cost them.
NeXovation, Inc., a Nashville-based company, has agreed to release $200,000 from a $1.5 million escrow account to Dover Motorsports, Inc., owners of the superspeedway, in exchange for more time to complete its due diligence on the property.
The released funds are non-refundable.
The company effectively has an additional 30 days to close on the property, now scheduled to take place on or before Nov. 25.
"We intend to close before the end of the year, ideally, as soon as possible," said Robert J. "Robb" Sexton, CEO of NeXovation, in a statement from the company.
The agreement, reported in a filing to the Securities and Exchange Commission, also states that NeXovation has the option to extend the deadline to Dec. 24 by releasing another $200,000 to Dover Motorsports. All funds released may be applied to the purchase price, according to the report.
This is the second extension the parties have agreed upon. The first extension was agreed upon on Aug. 26. The first amendment to the agreement extended the closing date to Oct. 25.
The two companies originally entered into an agreement to purchase the facility on May 28, which included a purchase price of $45.8 million. Of that purchase price, NeXovation agreed to pay Dover Motorsports $27 million and take over responsibility for the remaining $18.8 million in outstanding bond obligations to Wilson County.
Under the original agreement, NeXovation had until Oct. 7 to back out of the deal and still retain its $1.5 million in earnest money held in escrow. The most the company could recoup now would be $1.3 million.
Many have speculated though that the deal may not be as close to the finish line as thought, given the limited information that has been released by NeXovation.
At a recent Economic Development Committee meeting, Wilson County Mayor Randall Hutto acknowledged that an extension had been granted and that the potential buyers were sorting through the details of the property, but he added that he was still cautiously optimistic that the sale would be completed.
A public relations representative on behalf of NeXovation could not give further details of the delays but claimed it was nothing out of the ordinary for a deal like this.
The last event held at the race track was in 2011, after which the superspeedway was closed to the public. Occasionally, racing teams rent the track for testing purposes, but no permanent plans have been made since its closing.
Sexton, who is also the founder of NeXovation and a Hendersonville resident, stated the company intended to operate the track year-round but failed to give more details of exactly what plans the company had.
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