13D Filing: Medallion Capital Inc and Appliance Recycling Centers Of America Inc (NASDAQ:ARCI)

CUSIP No. 03814F 20 5

Item 1.

Security and Issuer.

(a)

Title of Class of Securities: Common stock, no par value

(b)

Name of Issuer: Appliance Recycling Centers of America, Inc. (the “Company”)

(c)

Address of Issuer’s Principal Executive Offices: 7400 Excelsior Boulevard, Minneapolis, MN 55426-4517

Item 2.

Identity and Background.

(a)

Name of Person Filing: Medallion Capital, Inc. (“Medallion Capital”)

(b)

Residence or Business Address: 3000 West County Road 42, Suite 301, Burnsville, MN 55337-4827

(c)

Principal Occupation or Employment: N/A

(d)

Conviction in a criminal proceeding during the last five years: None

(e)

Subject, during the last five years, to a judgment, decree or final order enjoining securities laws violations: None

(f)

Citizenship: State of Minnesota, Country of United States

Item 3.

Source and Amount of Funds or Other Consideration.

Not applicable.

Item 4.

Purpose of Transaction.

Medallion Capital may, from time to time,
attempt to dispose of shares of common stock of the Company owned by Medallion Capital in the open market, in privately negotiated
transactions or otherwise.

Medallion Capital does not have any present
plans or intentions that would result in or relate to any of the transactions described in subparagraphs (a) through (j) of Item
4 of Schedule 13D.

Item 5.

Interest in Securities of Issuer

As of March 28, 2017, Medallion Capital
is the beneficial owner of 467,000 shares of common stock of the Company, representing 7.0% of the 6,655,365 shares of common stock
of the Company outstanding as reported on the Company’s Form 10-Q for the quarter ended October 1, 2016 filed with the SEC
on November 15, 2016.

Dean Pickerell, the President of Medallion
Capital, served as a member of the Company’s board of directors until the Company’s annual meeting on May 18, 2015.
Mr. Pickerell did not stand for re-election at that meeting. Mr. Pickerell holds stock options which would entitle him, now or
within 60 days, to purchase 32,000 shares of Company common stock. The stock options and any shares issued upon their exercise
are owned by Mr. Pickerell and not owned by Medallion Capital, and Medallion Capital disclaims any interest in those options or
option shares. Medallion’s right to dispose and vote the 467,000 shares it owns is independent of Mr. Pickerell’s rights
in his option shares.