-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NLBcsCg06XtQDF2qRKGfIQn9CLO2CFSkbGXuNU471vEFIS98FL70Z9zNCsi3z02m ipxzv9hFKa9100TxdKWuwA== /in/edgar/work/0001005477-00-007184/0001005477-00-007184.txt : 20001020 0001005477-00-007184.hdr.sgml : 20001020 ACCESSION NUMBER: 0001005477-00-007184 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001012 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20001019 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHELL GROUP CORP CENTRAL INDEX KEY: 0000797313 STANDARD INDUSTRIAL CLASSIFICATION: [4841 ] IRS NUMBER: 112805051 STATE OF INCORPORATION: NY FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-18066 FILM NUMBER: 742646 BUSINESS ADDRESS: STREET 1: 14 METEOR DR STREET 2: BLDG 18 CITY: ETOBOCOKE ONTARIO STATE: A6 ZIP: 00000 BUSINESS PHONE: 4166756666 MAIL ADDRESS: STREET 1: 14 METEOR DR CITY: ETOBICOKE ONTARIO STATE: A6 FORMER COMPANY: FORMER CONFORMED NAME: NETWORKS NORTH INC DATE OF NAME CHANGE: 19980811 FORMER COMPANY: FORMER CONFORMED NAME: NTN CANADA INC DATE OF NAME CHANGE: 19961016 8-K 1 0001.txt FORM 8-K 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): October 12, 2000 CHELL GROUP CORPORATION. .................................................. (Exact name of registrant as specified in its charter) NEW YORK 005-524525 112805051 ................................................................................ (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 14 METEOR DRIVE, ETOBICOKE, ONTARIO CANADA, M9W 1A4 ........................................................... (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code........... 416 675-6666 NETWORKS NORTH, INC. ................................................... (Former name or former address, if changed since last report.) - -------------------------------------------------------------------------------- Item 4. Changes in Registrant's Certifying Accountant - -------------------------------------------------------------------------------- On October 12, 2000, Ernst & Young LLP ("E&Y"), the independent accountants who were engaged as the principal accountants to audit the financial statements of Chell Group Corporation (the "Registrant"), resigned as the Registrant's certifying accountants. E&Y's report on the Registrant's financial statements for the past two years contained no adverse opinion or disclaimer of opinion, and were not qualified or modified as to uncertainty, audit scope or accounting principles. During the Registrant's two most recent fiscal years and during the subsequent interim period preceding E&Y's resignation, the Registrant had no disagreement with E&Y on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. The facts and circumstances that relate to E&Y's resignation, as far as they are known to the Registrant, are as follows: E&Y has served as the Registrant's certifying accountant since 1995. E&Y orally informed the Registrant that pursuant to E&Y's internal rules, E&Y will resign as the Registrant's certifying accountant since it was unwilling and therefore unable to rely upon the representations of Mr. Cameron Chell, the Registrant's President and Chief Executive Officer, due to the existence of a Settlement Agreement dated November 6, 1998, between Cameron Chell, and the Alberta Stock Exchange (the "Settlement Agreement"). On April 3, 2000, the Registrant's board of directors appointed Mr. Chell as a director and elected him as its Chair; on April 3, 2000, Chell.com. Ltd., a corporation wholly-owned by Mr. Chell, purchased approximately 16% of the Registrant's issued and outstanding common stock; and on April 7, 2000, the Registrant advised E&Y of the existence of the Settlement Agreement. Pursuant to the Settlement Agreement, Mr. Chell acknowledged the existence of certain facts that occurred during 1996 and 1997 while Mr. Chell was a registered representative in Alberta, Canada, licensed by the Alberta Securities Commission, and he agreed to certain restrictions imposed by the Alberta Stock Exchange and to pay a CN$25,000 civil fine. On October 17 2000, the Registrant delivered a copy of this Report on Form 8-K to E&Y, and requested E&Y to furnish the Registrant with a letter addressed to Securities and Exchange Commission stating whether or not E&Y agrees with the statements made by the Registrant in response to this Item 4, and, if it does not agree, stating in the respects in which E&Y does not agree. A copy of the response letter of E&Y is attached hereto as Exhibit "16." The Registrant is presently interviewing other accounting firms to act as its certifying accountant. The Registrant will not place any limitations on communications between E&Y and its successor certifying accountants. Item 7. Exhibits - -------------------------------------------------------------------------------- (16) Letter from Ernst & Young LLP dated October 18, 2000 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Chell Group Corporation f/k/a Networks North Inc. a New York Corporation Date: October 18, 2000 By: /s/Cameron Chell ------------------------------------- Cameron Chell, President & CEO EXHIBIT INDEX Exhibit Number Description of Exhibit - ------ ---------------------- 16 Letter from Ernst & Young LLP dated October 18, 2000 EX-16 2 0002.txt LETTER FROM ERNST & YOUNG LLP [LETTERHEAD OF ERNST & YOUNG] October 18, 2000 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Re: Chell Group Corporation Gentlemen: We have read item 4 of Form 8-K dated October 18, 2000, of Chell Group Corporation (the "Company") and are in agreement with the statement contained therein pertaining to us, except that we have no basis to agree or disagree with the statements of the Company contained in the seventh paragraph of Item 4. Yours truly, /s/ Ernst & Young Ernst & Young LLP c.c. Mr. Don Pagnutti, Chief Operating Officer, Chell Group Corporation -----END PRIVACY-ENHANCED MESSAGE-----