<SEC-DOCUMENT>0001104659-20-048601.txt : 20200420
<SEC-HEADER>0001104659-20-048601.hdr.sgml : 20200420
<ACCEPTANCE-DATETIME>20200420115804
ACCESSION NUMBER:		0001104659-20-048601
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20200419
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
FILED AS OF DATE:		20200420
DATE AS OF CHANGE:		20200420

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CONTINENTAL MATERIALS CORP
		CENTRAL INDEX KEY:			0000024104
		STANDARD INDUSTRIAL CLASSIFICATION:	CONCRETE GYPSUM  PLASTER PRODUCTS [3270]
		IRS NUMBER:				362274391
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1228

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-03834
		FILM NUMBER:		20801828

	BUSINESS ADDRESS:	
		STREET 1:		440 S. LASALLE
		STREET 2:		SUITE 3100
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60605
		BUSINESS PHONE:		312-541-7200

	MAIL ADDRESS:	
		STREET 1:		440 S. LASALLE
		STREET 2:		SUITE 3100
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60605

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONTINENTAL URANIUM INC
		DATE OF NAME CHANGE:	19660830
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>tm2016372-1_8k.htm
<DESCRIPTION>FORM 8-K
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM&nbsp;8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section&nbsp;13 or 15(d)&nbsp;of
the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of Earliest Event Reported):
<B>April 19, 2020</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Continental Materials Corporation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact Name of Registrant as Specified in
its Charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="vertical-align: top; width: 34%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 3%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 30%; text-align: center"><FONT STYLE="font-size: 10pt"><B>001-03834</B></FONT></TD>
    <TD STYLE="vertical-align: bottom; width: 3%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 30%; text-align: center"><FONT STYLE="font-size: 10pt"><B>36-2274391</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">(State or Other Jurisdiction of</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(Commission</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">(IRS Employer</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; text-align: center">Incorporation)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">File Number)</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">Identification Number)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>440 S. LaSalle Drive, Suite 3100, Chicago,
IL 60605</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of Principal Executive Offices)
(Zip Code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>(312) 541-7200</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Securities registered pursuant to Section
12(b) of the Act:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 39%; border: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center">Title of each class</TD>
    <TD STYLE="width: 24%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center">Trading Symbol(s)</TD>
    <TD STYLE="width: 37%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center">Name of each exchange on which registered</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center">Common Stock - $0.25 par value</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center">CUO</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-bottom: 2.2pt; padding-left: 5.4pt; text-align: center">NYSE American</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">Check the appropriate box below if the
Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(<I>see</I> General Instruction A.2. below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt"><FONT STYLE="font-family: Wingdings">o</FONT>&nbsp;Written
communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt"><FONT STYLE="font-family: Wingdings">o</FONT>&nbsp;Soliciting
material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt"><FONT STYLE="font-family: Wingdings">o</FONT>&nbsp;Pre-commencement
communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17 CFR 240.14d-2(b))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt"><FONT STYLE="font-family: Wingdings">o</FONT>&nbsp;Pre-commencement
communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17 CFR 240.13e-4(c))</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 19.8pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicate by check mark whether the registrant is an emerging
growth company as defined in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2 of the Securities
Exchange Act of 1934 (&sect;240.12b-2 of this chapter).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Emerging growth company&nbsp;<FONT STYLE="font-family: Wingdings">o</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act.&nbsp;<FONT STYLE="font-family: Wingdings">o</FONT>&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 1.01. Entry into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Paycheck Protection Program Loan</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 14, 2020, Continental Materials
Corporation (together with its subsidiaries, the &ldquo;Company&rdquo;) entered into a promissory note, dated as of April 8, 2020
(the &ldquo;Note&rdquo;) in favor of CIBC Bank USA (the &ldquo;Lender&rdquo;) evidencing a loan in the aggregate principal amount
of $5,487,000 (the &ldquo;Loan&rdquo;) pursuant to the Paycheck Protection Program (the &ldquo;PPP&rdquo;)&nbsp;under Division
A, Title I of&nbsp;Coronavirus Aid, Relief, and Economic Security Act&nbsp;(&ldquo;CARES Act&rdquo;), which was enacted on March
27, 2020.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Interest Rate</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The interest rate on the Loan is 1.00%
per year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Maturity</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The term of the Loan is two years. The
Company will be required to pay any unforgiven principle and interest in eighteen equal monthly installments, with the first payment
being due on November 8, 2020 and continuing on the same day of each subsequent month until the date of maturity. <FONT STYLE="background-color: white">The
Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Potential Loan Forgiveness</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Under the PPP, the Company may apply for
forgiveness of the amount due on the Loan in an amount equal to the sum of the following costs incurred during the 8-week period
beginning on the date of the first disbursement of the Loan: (a) payroll costs, (b) any payment of interest on a covered obligation
(which shall not include any prepayment of or payment of principal on a covered mortgage obligation), (c) any payment on a covered
rent obligation, and (d) any covered utility payment, calculated in accordance with the terms of the CARES Act. <FONT STYLE="background-color: white">No
assurance can be provided that the Company will obtain forgiveness of the Loan in whole or in part.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Events of Default</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Loan provides for customary events of default, including
payment defaults, cross-defaults on any other loan with the lender, and breach of the terms of the Note. The Loan may be accelerated
upon the occurrence of an event of default, among other remedies available to the Lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing description of the Loan is a summary of, and does
not purport to be a complete statement of, the terms of the Note or the rights and obligations of the parties thereunder, and is
qualified in its entirety by reference to the full text of the Note, a copy of which will be filed with the Securities and Exchange
Commission (the &ldquo;Commission&rdquo;) as an exhibit to the Company&rsquo;s next periodic report under the Securities Act of
1934, as amended (the &ldquo;Exchange Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><B><I>Property
Sale Agreements</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><I>Black
Canyon Quarry</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">On
April 16, 2020, Castle Concrete Company, a subsidiary of the Company (&ldquo;Castle Concrete&rdquo;), entered into a Real Estate
Purchase Agreement (the &ldquo;Black Canyon Agreement&rdquo;) with the City of Colorado Springs (the &ldquo;City&rdquo;). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">Pursuant
to the Black Canyon Agreement, the City will purchase the real property and related fixtures and improvements located in El Paso
County, Colorado commonly known as the Black Canyon Quarry (the &ldquo;Black Canyon Property&rdquo;) from the Company for a total
purchase price of $2,140,000 to be paid in cash at the closing of the transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
Black Canyon Agreement contains certain representations and warranties by the Company as to environmental matters and the physical
condition of the Black Canyon Property. Either party may terminate the Black Canyon Agreement in the event the other party defaults
on the terms of the Black Canyon Agreement. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
consummation of the sale of the Black Canyon Property is contingent upon, among other things, the completion of due diligence and
related matters to the City&rsquo;s satisfaction, approval of the transaction by the governing bodies of the Company and the City,
receipt of the approval of the Reclamation Plan Amendment by the DRMS, each as defined below, and certain other regulatory approvals,
and the consummation of the sales of the Pikeview Buffer Property and the Pikeview Quarry Property, each as defined below. The
sale of the Black Canyon Property is expected to be completed in the third quarter of 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><I>Pikeview
Buffer Property</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">On
April 16, 2020, Castle Concrete entered into a Contract for the Sale of Real Estate (the &ldquo;Pikeview Buffer Agreement&rdquo;)
with The Conservation Fund, a non-profit entity (&ldquo;TCF&rdquo;). </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">Pursuant
to the Pikeview Buffer Agreement, TCF will purchase approximately 147.02 acres of real property and related fixtures and improvements
located in El Paso County, Colorado (the &ldquo;Pikeview Buffer Property&rdquo;) from the Company for a total purchase price of
$6,660,000 to be paid in cash at the closing of the transaction.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
Pikeview Buffer Agreement contains customary representations and warranties by the Company as to environmental and other matters
and the physical condition of the Pikeview Buffer Property. Under the Pikeview Buffer Agreement, the Company agrees to indemnify
TCF for a period of two years from the closing of the transaction for damages arising from any hazardous materials present on the
Pikeview Buffer Property. Either party may terminate the Pikeview Buffer Agreement in the event the other party defaults on the
terms of the Pikeview Buffer Agreement. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
consummation of the sale of the Pikeview Buffer Property is contingent upon, among other things, the completion of due diligence
and related matters to TCF&rsquo;s satisfaction, approval of the transaction by the governing bodies of the Company and TCF, receipt
of the approval of the Reclamation Plan Amendment by the DRMS and certain other regulatory approvals, and the consummation of the
sales of the Black Canyon Property and the Pikeview Quarry Property. The sale of the Pikeview Buffer Property is expected to be
completed in the third quarter of 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><I>Pikeview
Quarry Property</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">On
April 16, 2020, Castle Concrete entered into an Agreement for the Donation of Real Estate Property (the &ldquo;Pikeview Quarry
Agreement&rdquo; and, collectively with the Black Canyon Agreement and the Pikeview Buffer Agreement, the &ldquo;Sale Agreements&rdquo;)
with the City. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">Pursuant
to the Pikeview Quarry Agreement, the Company will donate to the City the real property and related fixtures and improvements located
in El Paso County, Colorado commonly known as the Pikeview Quarry (the &ldquo;Pikeview Quarry Property&rdquo;), as well as the
mining permit held by the Company with respect to the Pikeview Quarry Property (the &ldquo;Permit&rdquo;). As previously disclosed,
the Company determined in 2019 to cease mining operations at the Pikeview Quarry Property and has commenced reclamation activities.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
Pikeview Quarry Agreement contains certain representations and warranties by the Company as to environmental matters and the physical
condition of the Pikeview Quarry Property. Either party may terminate the Pikeview Quarry Agreement in the event the other party
defaults on the terms of the Pikeview Quarry Agreement. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white">The
consummation of the donation of the Pikeview Quarry Property is contingent upon, among other things, the approval of an amendment
to the Company&rsquo;s plan of reclamation for the Pikeview Quarry (the &ldquo;Reclamation Plan Amendment&rdquo;) by the Colorado
Division of Reclamation, Mining and Safety (the &ldquo;DRMS&rdquo;) by May 31, 2020, the completion of the Company&rsquo;s reclamation
work as required by the Permit, the completion of due diligence and related matters to the City&rsquo;s satisfaction, approval
of the transaction by the governing bodies of the Company and the City, receipt of certain other regulatory approvals, and the
consummation of the sales of the Black Canyon Property and the Pikeview Buffer Property. The donation of the Pikeview Quarry Property
is expected to be completed in the third quarter of 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing description of the Sale Agreements is a summary
of, and does not purport to be a complete statement of, the terms of the Sale Agreements or the rights and obligations of the parties
thereunder, and is qualified in its entirety by reference to the full text of the Sale Agreements, copies of which will be filed
with the Commission as an exhibit to the Company&rsquo;s next periodic report under the Exchange Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="background-color: white"><B>Item
2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information set forth under Item 1.01 of this Current Report
on Form 8-K under the heading &ldquo;Paycheck Protection Program Loan&rdquo; is incorporated by reference into this Item 2.03.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Forward-Looking Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">This
Current Report on Form 8-K contains various forward-looking statements within the meaning of </FONT><FONT STYLE="background-color: white">Section&nbsp;27A
of the Securities Act of 1933, as amended, Section&nbsp;21E of the Exchange Act, and the Private Securities Litigation Reform
Act, as amended</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">. </FONT>Forward-looking statements include those
containing such words as &ldquo;anticipates,&rdquo; &ldquo;believes,&rdquo; &ldquo;estimates,&rdquo; &ldquo;expects,&rdquo; &ldquo;forecasts,&rdquo;
&ldquo;hopes,&rdquo; &ldquo;outlook,&rdquo; &ldquo;plans,&rdquo; &ldquo;projects,&rdquo; &ldquo;should,&rdquo; &ldquo;targets,&rdquo;
&ldquo;will,&rdquo; &ldquo;will likely result,&rdquo; &ldquo;would,&rdquo; or other words of similar meaning. All statements that
reflect the Company&rsquo;s expectations, assumptions or projections about the future other than statements of historical fact
are forward-looking statements, including, without limitation, statements regarding potential uses of the proceeds of the Loan
and statements about the Company&rsquo;s strategies, objectives, goals, targets, outlook, and business and financial prospects.
Forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors and are not guarantees
of future performance. Actual results, performance or outcomes may differ materially from those expressed in or implied by those
forward-looking statements. Important factors that could cause the Company&rsquo;s actual results to differ materially from those
expressed or implied in the forward-looking statements include: (a)&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif">concerns
with or threats of, or the consequences of, pandemics, contagious diseases or health epidemics, including the novel coronavirus</FONT>;
(b) the conclusions of any due diligence or other review conducted with respect to the Company&rsquo;s real properties to be transferred
pursuant to the Sale Agreements; and (c)&nbsp;the other risk factors disclosed in the Company other reports filed with the Commission.
The Company disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new
information, future events or otherwise, except as required by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 29.7pt">Pursuant to the requirements of the Securities
Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><B>Continental Materials Corporation</B></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 46%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>Date: April 19, 2020</TD>
    <TD>By:</TD>
    <TD STYLE="border-bottom: black 1pt solid">/s/Paul Ainsworth</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Paul Ainsworth</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Chief Financial Officer</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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