CHASE GENERAL CORP Transfers Business Assets in Lieu of Foreclosure

What Happened

• On August 31, 2026, Dye Candy Company, a subsidiary of CHASE GENERAL CORP, entered into an Agreement for Deed in Lieu of Foreclosure with its lender, G.W. Chase Candy Company LLC, and transferred substantially all of its business assets to the lender (excluding cash and certain other excluded assets). The lender released Dye Candy Company from outstanding payment obligations under the loan. The company filed the 8-K on September 2, 2026.

Key Details

• Transaction date: August 31, 2026; 8-K filed September 2, 2026.
• Parties: Dye Candy Company (subsidiary) and lender G.W. Chase Candy Company LLC.
• Debt discharged: principal of approximately $500,000 plus accrued interest as of closing.
• Result: Transferred assets constituted substantially all of the Company’s business assets; CHASE GENERAL CORP and Dye Candy retain no residual interest and will cease ongoing business operations except to wind up affairs.
• Agreement and related documents are filed as Exhibit 10.1 to the 8-K.

Why It Matters

• The company has effectively relinquished its operating business and had its related debt discharged, which materially changes its asset base and operating status.
• Investors should note CHASE GENERAL CORP no longer has ongoing business operations beyond winding up activities, which could affect future revenue, liquidity and going-concern prospects.
• Shareholders and potential investors should review the filed Agreement (Exhibit 10.1) and monitor subsequent SEC filings for details on liquidation, restructuring, or other corporate actions.