-----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, K1ds/xQFog86mJ+LsAIczoLt9Azj8jQgRkqlxd/LnAiZA1XwJDeWFrpe/mEPzZqz iql996jkNSr2e5lFayu2BA== 0001047469-98-006796.txt : 19980219 0001047469-98-006796.hdr.sgml : 19980219 ACCESSION NUMBER: 0001047469-98-006796 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980218 ITEM INFORMATION: FILED AS OF DATE: 19980218 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUARTZ GROUP INC CENTRAL INDEX KEY: 0000855373 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [3572] IRS NUMBER: 841067075 STATE OF INCORPORATION: CO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 033-31068 FILM NUMBER: 98544470 BUSINESS ADDRESS: STREET 1: 3029 S HARBOR BLVD CITY: SANTA ANA STATE: CA ZIP: 92704 BUSINESS PHONE: 7144295984 MAIL ADDRESS: STREET 1: 3029 S HARBOR BLVD CITY: SANTA ANA STATE: CA ZIP: 92704 FORMER COMPANY: FORMER CONFORMED NAME: BROWN DISC PRODUCTS CO INC DATE OF NAME CHANGE: 19920703 8-K 1 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): February 18, 1998 ----------------- THE QUARTZ GROUP, INC. - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Colorado 33-31068 84-1067075 - ------------------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation File No.) Identification No.) 245 Fischer Ave., Suite A-1, Costa Mesa, California 92626 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (714) 854-0860 Former Name: BROWN DISC PRODUCTS COMPANY, INC. - ------------------------------------------------------------------------------- (Former name or former address, if changed since last report) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- THE QUARTZ GROUP, INC. (formerly named Brown Disc Products Company, Inc.) ITEM 5. OTHER EVENTS BREACH OF SUBSCRIPTION AGREEMENTS During the period from September 19, 1997 through September 30, 1997, The Quartz Group, Inc. (the "Company") issued subscription documents in three related private placement offerings for total consideration of $900,000, for the following securities: (i) a limited recourse, non-interest bearing promissory note of $750,000 (the "Limited Recourse Note"), (ii) 9,000,000 shares of the Company's common stock and (iii) common stock purchase warrants exercisable at $0.25 per share expiring on September 30, 2002 to purchase an additional 6,500,000 shares of the Company's common stock. The subscribed securities ("Subscribed Securities) were sold in three related offerings, as follows: (A) For the purchase price of $50,000 to be paid by two investors, Donna Kull and a corporate entity named Yes Corp., on September 19, 1997 the Company sold a total of 1,000,000 shares of common stock. (B) For the purchase price of $750,000 to be paid by one investor, John Kull, on September 23, 1997 the Company sold (i) the $750,000 principal amount Limited Recourse Note, (ii) 7,000,000 shares of common stock and (iii) Class E common stock purchase warrants to purchase an additional 6,000,000 shares of common stock exercisable at $0.25 per share expiring on September 30, 2002 (the "Class E Warrants"). (C) For the purchase price of $100,000 to be paid by Christina G. Etchison and Donald P. Etchison, on September 30, 1997 the Company sold subscriptions (i) 1,000,000 shares of common stock and (ii) Class F common stock purchase warrants to purchase an additional 500,000 shares of common stock exercisable at $0.25 per share expiring on September 30, 2002 (the "Class F Warrants"). Of the Subscribed Securities, only $100,000 has been paid by Christina G. Etchison. Despite repeated demands, and after repeated assurances by John Kull and Donna Kull and Yes Corp., the remaining subscriptions have not been paid. On January 26, 1998, a check in the amount of $250,000 was tendered by John Kull towards the Subscribed Securities. This check was returned for non-sufficient funds. Based on this, the Company has concluded that the remaining $800,000 of Subscribed Securities will not be paid. The private placement of the Subscribed Securities was reported as a change in control of registrant on Form 8-K pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 on September 30, 1997. Based on this conclusion, the following table has been amended from the table as shown on the Company's September 30, 1997 Form 8-K to reflect the reduction of outstanding securities as described herein:
Number of Shares or Warrants Outstanding ---------------------------------------------- Outstanding Changes Outstanding at During at Class or Series March 31, 1997 the Period Sept. 30, 1997 - -------------------------------- -------------- ---------- -------------- Series A Redeemable Preferred stock, no par value, liquidation preference $11.00 per share 12,613 -0- 12,613 10% Series B Convertible Preferred stock, no par value, liquidation preference $5.00 per share 6,000 (4,000) 2,000 Common stock, no par value 5,729,837 2,349,963 8,079,800 Common Stock Purchase Warrants: Class A warrants 2,000,000 (2,000,000) -0- Class B warrants 1,000,000 (1,000,000) -0- Class C warrants 112,350 -0- 112,350 Class D warrants 410,000 -0- 410,000 Class E warrants -0- -0- -0- Class F warrants -0- 500,000 500,000
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 thereunto duly authorized. Date: February 18, 1998 THE QUARTZ GROUP, INC. (Registrant) By: /s/ David J. Lopes ------------------------------------ David J. Lopes, President, Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer
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