Envela Corp — Director's Dealing 2010

Jun 2, 2010

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: DGSE COMPANIES INC (DGSE)
CIK: 0000701719
Period of Report: 2010-05-25

Reporting Person: NTR METALS, LLC (10% Owner)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	3000000	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Option Contract	$	2014-05-25	Common Stock (1000000)		Direct

Footnotes

F1: The 3,000,000 shares of Common Stock owned by the Reporting Person were acquired by the Reporting Person pursuant to (a) the Partial Assignment Agreement, dated as of May 25, 2010, by and between the Reporting Person and the Issuer and (b) the Closing Agreement, dated as of May 25, 2010, by and among the Reporting Person, the Issuer and Dr. L.S. Smith ("Dr. Smith").

F2: The Reporting Person entered into an Option Contract (the "Option Contract"), dated as of May 25, 2010, with Dr. Smith. Pursuant to the Option Contract, Dr. Smith granted the Reporting Person an option to purchase 1,000,000 shares of Common Stock owned by Dr. Smith.

F3: Pursuant to the Option Contract, for the first two years following May 25, 2010, the exercise price will be (a) $6.00 per share of Common Stock and (b) the release of Dr. Smith's guaranty of the Issuer's $1,500,000 line of credit with Texas Capital Bank, N.A. For the third and fourth years following May 25, 2010, the exercise price will be (a) $10.00 per share of Common Stock and (b) the release of Dr. Smith's guaranty of the Issuer's $1,500,000 line of credit with Texas Capital Bank, N.A. The option granted to the Reporting Person pursuant to the Option Contract expires on May 25, 2014 if the option is not exercised by such date.