Unifi to Sell North Carolina Property for $60 Million, Stock Jumps

What happened

Unifi Inc. (NYSE: UFI), a Greensboro, North Carolina-based textile manufacturer, announced on August 17, 2026 that its subsidiary, Unifi Manufacturing, Inc., has entered into a Real Estate Purchase and Sale Agreement to sell certain industrial property in Yadkin County, North Carolina to Enovum Data Centers Corp., a Canadian corporation, for a cash purchase price of $60.0 million.

The property consists of industrial/manufacturing building spaces and surrounding land. The buyer has deposited $2.25 million in escrow as earnest money, of which $1.0 million may become non-refundable if the buyer extends the inspection period. The inspection period expires on September 15, 2026, unless extended. Closing is scheduled for 45 days after the inspection period expires, unless accelerated.

Unifi said the net proceeds will be used to repay a portion of its term loan debt under its existing credit agreement with Wells Fargo Bank. The company noted that the total net book value of the transferred property was less than $5.0 million as of June 28, 2026.

The stock closed at $8.03 on August 17, up 24.5% from the previous close of $6.45, on volume of 779,026 shares versus an average of 94,122. The filing does not explicitly state why the stock rose, but the announcement of the sale and debt repayment is the only material news disclosed.

The filing

This is a Form 8-K, the form companies file with the SEC to announce major events that shareholders should know about. It was filed on August 17, 2026, covering items 1.01 (entry into a material definitive agreement) and 7.01 (Regulation FD disclosure, referring to a press release issued the same day).

The sale agreement is deemed material because it involves a significant asset and the proceeds will be used to pay down debt. The Regulation FD item ensures the information was broadly disseminated via the press release, which is attached as Exhibit 99.1.

The filing includes standard terms: representations and warranties surviving 12 months after closing, indemnification obligations triggered only after losses exceed $0.1 million and capped at 3% of the purchase price, and customary closing conditions. It also notes conditions related to energy capacity studies, governmental approvals, and agreements on post-closing occupancy and partial lease-back.

What this means

This transaction is a sale of a physical asset—real estate—for cash. The $60 million purchase price is far above the property's book value of less than $5 million, which suggests a substantial gain, but the filing does not state the expected gain or how it will be accounted for.

The company says it will use the proceeds to repay part of its term loans, which is a debt repayment rather than a new borrowing. This could reduce interest expenses and lower leverage, but the filing does not provide details on the total debt outstanding or the expected savings.

The buyer, Enovum Data Centers Corp., is a Canadian data center company. The sale includes conditions related to confirming energy capacity and an energy study, which aligns with the buyer's likely interest in securing power for data center operations. A partial lease-back means Unifi will continue to occupy some of the property after the sale.

The next steps are defined by the agreement: the inspection period ends September 15, 2026, and unless extended, closing is scheduled 45 days later, around late October 2026. However, the transaction is not guaranteed; it is subject to the conditions outlined in the filing, including the energy study and approvals.