<HTML>
<HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="margin-left: 0.25in; width: 7.2in;font-family: 'Times New Roman',Times,serif">
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>

<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): May 6, 2009</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>SMART MOVE, INC. </B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD nowrap align="center" valign="top"><B>Delaware
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>001-32951
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>54-2189769 </B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(State or other jurisdiction<BR>
of incorporation)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Commission File Number)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="48%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD width="48%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD align="center" valign="top"><B>5990 Greenwood Plaza Blvd. #390 <BR>
Greenwood Village, CO
</B></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><B>&nbsp;<BR>80111</B></TD>
</TR>
<TR style="font-size: 1px">
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD valign="top" align="left">&nbsp;</TD>
<TD valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" valign="top">(Address of principal executive offices)
</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">Registrant&#146;s telephone number, including area code: <B>(720) 488-0204 </B></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Not Applicable </B></DIV>

<DIV align="center" style="font-size: 10pt"><FONT style="border-top: 1px solid #000000">(Former name or former address, if changed since last report.)</FONT></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: </DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
<TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
<TD width="3%" nowrap align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
<TD width="1%">&nbsp;</TD>
<TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio --> </DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Forward Looking Statements</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Statements in this Current Report on Form 8-K (including the exhibits) that are not purely
historical facts, including statements regarding Smart Move, Inc.&#146;s beliefs, expectations,
intentions or strategies for the future, may be &#147;forward-looking statements&#148; under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding
expected financing or funding transactions and any statements identified by forward looking terms
such as &#147;may,&#148; &#147;will,&#148; &#147;would,&#148; &#147;expect,&#148; &#147;plan,&#148; &#147;anticipate&#148; or &#147;project.&#148; These statements are
subject to risks and uncertainties which could cause actual results to differ materially from such
statements, including, among others, the risks and uncertainties associated with the acceleration
of maturity of secured indebtedness and foreclosure of operating assets as described in this report
in relation to the operations the Company may continue to conduct without such assets, the effect
of the proposed discharge of material secured indebtedness through acceptance of collateral in
satisfaction of debt and risks relating to general economic conditions affecting the markets for
moving services to which the Company&#146;s operations pertain. Smart Move included a discussion of
these and other pertinent risk factors in its Annual Report on
Form&nbsp;10-KSB for 2007 and in the
Quarterly Reports on Form 10-Q for the first, second and third quarters of 2008. Smart Move
disclaims any intention or obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The information required in Item&nbsp;1.01 above is hereby
incorporated by reference from Item&nbsp;2.04.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;1.02 Termination of a Material Definitive Agreement</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">The information required in Item&nbsp;1.02 above is hereby
incorporated by reference from Item&nbsp;2.04.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>Item&nbsp;2.04</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet
Transaction</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As disclosed in our Form 10-Q report for the third quarter of 2008, certain events of default
occurred under our Secured Convertible Notes and the associated Security Agreements which secured
the indebtedness with assets including our SmartVault containers, component
parts of containers and the tool mold we use to manufacture our containers. These obligations
collectively represent aggregate principal indebtedness of $13.2&nbsp;million. The holders of these
secured convertible notes had deferred any action to accelerate the maturity of the obligations to
afford the Company time to pursue financing efforts which the Company hoped would enable correction
of the defaults and enable the Company to restore compliance with the continued listing
requirements of NYSE Alternext Exchange. These financing efforts proved unsuccessful, and as a
result of the Company&#146;s inability to fulfill its compliance plan
with NYSE Alternext Exchange, the
Company implemented a voluntary delisting of its common stock as described in a Current Report on
Form 8-K filed on February&nbsp;9, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">On May&nbsp;6, 2009, the holders of the Secured Convertible Notes in the aggregate amount of $13.2
million principal indebtedness, collectively exercised their right to accelerate maturity of
principal and interest and to require that all unpaid amounts under the Secured Convertible
Debentures be paid with interest, which includes interest at a default rate of 18% per annum from
the date of default. The Company does not have the resources to pay the amount due on the
obligations. The Company also determined that the magnitude of the indebtedness accelerated would
exceed the current market value of the assets pledged as collateral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Effective as of May&nbsp;6, 2009, Smart Move, Inc. entered into an Agreement to Accept Collateral
in Full Satisfaction of Obligations, with the original holders of the Company&#146;s Secured Convertible
Notes for which containers, component parts of containers and the tool mold used to manufacture
containers are pledged as assets. Under the Agreement to Accept Collateral in Full Satisfaction of
Obligations, the Company consented that the holders of the Secured Convertible Notes will be
permitted to conduct a strict foreclosure in accordance with the provisions of Section&nbsp;4-9-620(a)
of the Uniform Commercial Code of the State of Colorado and other laws. In consideration of the
acceptance of the collateral in full satisfaction of Smart Move, Inc.&#146;s indebtedness under the
Secured Convertible Notes the Company has waived its rights to notification of disposition of
collateral or to redeem collateral. The Company&#146;s agreement for the creditors&#146; acceptance of the
collateral in full satisfaction of indebtedness does not affect any third parties having rights,
interests or subordinate lien claims in the assets who may be entitled to receive notice from the
creditors and issue objections under applicable law. In connection with their acceptance of
collateral in satisfaction of debt, the secured creditors owning the Secured Convertible Notes also
confirmed their intention to conduct a judicial foreclosure of the security interests and liens in
the assets pledged as collateral and accepted in satisfaction of the debt. In consideration of the
agreement, transfers of interest and waivers evidenced by the Agreement to Accept Collateral in
Full Satisfaction of Obligations, our obligations under the Secured Convertible Notes will be
extinguished and certain mutual releases have been provided as described in the copy of the
Agreement to Accept Collateral in Full Satisfaction of Obligations as set out in Exhibit&nbsp;10.1
attached, which is filed as an exhibit to this Current Report, and is incorporated herein by
reference.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We believe that the foreclosure transaction structure proposed by the holders of secured
convertible indebtedness aggregating $13.2&nbsp;million of principal indebtedness is in the best
interest of the Company as we will extinguish all of the outstanding
$13.2&nbsp;million of senior
secured indebtedness currently due and will be in a better position to determine an appropriate
process for further arrangements with our creditors. In the context of the foreclosure
process, we have ceased most of our operations and we anticipate that our cash assets will be
insufficient to enable us to sustain continued operations as an active operating company in the
containerized moving industry. The Company intends concurrently to file a Form&nbsp;15 to terminate the
company&#146;s reporting obligations under the Exchange Act. The Company had fewer than 300
shareholders of record at the end of 2008 and currently has fewer than 300 shareholders. In the
aftermath of the foreclosure proceedings, the Company will have liabilities in excess of its
remaining assets and no value currently is anticipated to be available for distribution to
stockholders in any plan of liquidation. The Form&nbsp;15 is being filed based upon the Company&#146;s
awareness that the costs of an additional Form 10-K and any further Form 10-Q filings would reduce
amounts otherwise available to pay creditor obligations. The Company will undertake to supply this
same information to its shareholders and other interested parties and further updates via the Pink
Sheets&#146; OTC News and Disclosure Service as well as through our e-mail database and website. The
Company does not anticipate any further trading in the Company&#146;s common stock on the Pink Sheets
under the same symbol of &#147;SMVE&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">(d)&nbsp;Exhibits
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Exhibit</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>Agreement to Accept Collateral in Full Satisfaction of Obligations dated </B>May&nbsp;6, 2009.</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the
undersigned thereunto duly authorized.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">SMART MOVE, INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date: May&nbsp;8, 2009
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Chris Sapyta
<DIV style="font-size: 1pt; border-top: 1px solid #000000">&nbsp;</DIV>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>



</BODY>
</HTML>
[{"type": "8-K", "sequence": "1", "filename": "c85194e8vk.htm", "description": "FORM 8-K", "secsgml_size_bytes": 18796}]
{"company-data": {"conformed-name": "SMART MOVE, INC.", "cik": "0001349108", "assigned-sic": "4213", "irs-number": "542189769", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32951", "film-number": "09812224"}, "business-address": {"street1": "5990 GREENWOOD PLAZA BLVD", "street2": "SUITE 390", "city": "GREENWOOD VILLAGE", "state": "CO", "zip": "80111", "phone": "720-488-0204"}, "mail-address": {"street1": "5990 GREENWOOD PLAZA BLVD", "street2": "SUITE 390", "city": "GREENWOOD VILLAGE", "state": "CO", "zip": "80111"}}
Form 8-K
UNITED STATES
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): May 6, 2009
SMART MOVE, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-32951
54-2189769
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
5990 Greenwood Plaza Blvd. #390
Greenwood Village, CO
80111
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code:
(720) 488-0204
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Forward Looking Statements
Statements in this Current Report on Form 8-K (including the exhibits) that are not purely
historical facts, including statements regarding Smart Move, Inc.'s beliefs, expectations,
intentions or strategies for the future, may be "forward-looking statements" under the Private
Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding
expected financing or funding transactions and any statements identified by forward looking terms
such as "may," "will," "would," "expect," "plan," "anticipate" or "project." These statements are
subject to risks and uncertainties which could cause actual results to differ materially from such
statements, including, among others, the risks and uncertainties associated with the acceleration
of maturity of secured indebtedness and foreclosure of operating assets as described in this report
in relation to the operations the Company may continue to conduct without such assets, the effect
of the proposed discharge of material secured indebtedness through acceptance of collateral in
satisfaction of debt and risks relating to general economic conditions affecting the markets for
moving services to which the Company's operations pertain. Smart Move included a discussion of
these and other pertinent risk factors in its Annual Report on
Form 10-KSB for 2007 and in the
Quarterly Reports on Form 10-Q for the first, second and third quarters of 2008. Smart Move
disclaims any intention or obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
Item 1.01 Entry into a Material Definitive Agreement
The information required in Item 1.01 above is hereby
incorporated by reference from Item 2.04.
Item 1.02 Termination of a Material Definitive Agreement
The information required in Item 1.02 above is hereby
incorporated by reference from Item 2.04.
2
Item 2.04
Triggering Events That Accelerate or Increase a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet
Transaction
As disclosed in our Form 10-Q report for the third quarter of 2008, certain events of default
occurred under our Secured Convertible Notes and the associated Security Agreements which secured
the indebtedness with assets including our SmartVault containers, component
parts of containers and the tool mold we use to manufacture our containers. These obligations
collectively represent aggregate principal indebtedness of $13.2 million. The holders of these
secured convertible notes had deferred any action to accelerate the maturity of the obligations to
afford the Company time to pursue financing efforts which the Company hoped would enable correction
of the defaults and enable the Company to restore compliance with the continued listing
requirements of NYSE Alternext Exchange. These financing efforts proved unsuccessful, and as a
result of the Company's inability to fulfill its compliance plan
with NYSE Alternext Exchange, the
Company implemented a voluntary delisting of its common stock as described in a Current Report on
Form 8-K filed on February 9, 2009.
On May 6, 2009, the holders of the Secured Convertible Notes in the aggregate amount of $13.2
million principal indebtedness, collectively exercised their right to accelerate maturity of
principal and interest and to require that all unpaid amounts under the Secured Convertible
Debentures be paid with interest, which includes interest at a default rate of 18% per annum from
the date of default. The Company does not have the resources to pay the amount due on the
obligations. The Company also determined that the magnitude of the indebtedness accelerated would
exceed the current market value of the assets pledged as collateral.
Effective as of May 6, 2009, Smart Move, Inc. entered into an Agreement to Accept Collateral
in Full Satisfaction of Obligations, with the original holders of the Company's Secured Convertible
Notes for which containers, component parts of containers and the tool mold used to manufacture
containers are pledged as assets. Under the Agreement to Accept Collateral in Full Satisfaction of
Obligations, the Company consented that the holders of the Secured Convertible Notes will be
permitted to conduct a strict foreclosure in accordance with the provisions of Section 4-9-620(a)
of the Uniform Commercial Code of the State of Colorado and other laws. In consideration of the
acceptance of the collateral in full satisfaction of Smart Move, Inc.'s indebtedness under the
Secured Convertible Notes the Company has waived its rights to notification of disposition of
collateral or to redeem collateral. The Company's agreement for the creditors' acceptance of the
collateral in full satisfaction of indebtedness does not affect any third parties having rights,
interests or subordinate lien claims in the assets who may be entitled to receive notice from the
creditors and issue objections under applicable law. In connection with their acceptance of
collateral in satisfaction of debt, the secured creditors owning the Secured Convertible Notes also
confirmed their intention to conduct a judicial foreclosure of the security interests and liens in
the assets pledged as collateral and accepted in satisfaction of the debt. In consideration of the
agreement, transfers of interest and waivers evidenced by the Agreement to Accept Collateral in
Full Satisfaction of Obligations, our obligations under the Secured Convertible Notes will be
extinguished and certain mutual releases have been provided as described in the copy of the
Agreement to Accept Collateral in Full Satisfaction of Obligations as set out in Exhibit 10.1
attached, which is filed as an exhibit to this Current Report, and is incorporated herein by
reference.
3
We believe that the foreclosure transaction structure proposed by the holders of secured
convertible indebtedness aggregating $13.2 million of principal indebtedness is in the best
interest of the Company as we will extinguish all of the outstanding
$13.2 million of senior
secured indebtedness currently due and will be in a better position to determine an appropriate
process for further arrangements with our creditors. In the context of the foreclosure
process, we have ceased most of our operations and we anticipate that our cash assets will be
insufficient to enable us to sustain continued operations as an active operating company in the
containerized moving industry. The Company intends concurrently to file a Form 15 to terminate the
company's reporting obligations under the Exchange Act. The Company had fewer than 300
shareholders of record at the end of 2008 and currently has fewer than 300 shareholders. In the
aftermath of the foreclosure proceedings, the Company will have liabilities in excess of its
remaining assets and no value currently is anticipated to be available for distribution to
stockholders in any plan of liquidation. The Form 15 is being filed based upon the Company's
awareness that the costs of an additional Form 10-K and any further Form 10-Q filings would reduce
amounts otherwise available to pay creditor obligations. The Company will undertake to supply this
same information to its shareholders and other interested parties and further updates via the Pink
Sheets' OTC News and Disclosure Service as well as through our e-mail database and website. The
Company does not anticipate any further trading in the Company's common stock on the Pink Sheets
under the same symbol of "SMVE".
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit
Description
10.1
Agreement to Accept Collateral in Full Satisfaction of Obligations dated
May 6, 2009.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the
undersigned thereunto duly authorized.
SMART MOVE, INC.
Date: May 8, 2009
By:
/s/ Chris Sapyta
4