8-K

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                                 UNITED STATES
                       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): September 2, 1997
                                                        -----------------



                      Illinois Superconductor Corporation
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               (Exact Name of Registrant as Specified in Charter)





               Delaware               0-22302             36-3688459
        -----------------            ---------------  ------------------
          (State or Other            (Commission       (IRS Employer
           Jurisdiction               File Number)    Identification No.
          of incorporation)


        451 Kingston Court, Mount Prospect, Illinois  60056
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        (Address of Principal Executive Offices)      (Zip Code)


       Registrant's telephone number, including area code (847) 391-9400
                                                          --------------
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ITEM 5.    OTHER EVENTS.

On September 2, 1997, the Registrant issued the press release attached as
Exhibit 99.1 announcing its issuance of $1.5 million of convertible preferred
stock under its $15 million financing facility.  The information contained in
this press release is incorporated herein by reference.


ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS.

      (c)  Exhibits.

           99.1 Press Release of Registrant dated September 2, 1997



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                                   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.


                                       Illinois Superconductor Corporation



Dated:  September 3, 1997              By:  /s/ EDWARD W. LAVES
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                                            Edward W. Laves
                                            President and 
                                            Chief Executive Officer
 

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                                 Exhibit Index



Exhibit #                        Item
- ---------                        -------------
  99.1                           Press Release


                                    

EX-99.1

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                                                                    EXHIBIT 99.1


              ILLINOIS SUPERCONDUCTOR ACCESSES FINANCING FACILITY
                COMPANY RECEIVES $1.5 MILLION IN SECOND TRANCHE


Mount Prospect, IL (September 2, 1997) -- Illinois Superconductor Corporation
(Nasdaq: ISCO) announced today that it has received the second tranche in the
amount of $1.5 million from its previously announced $15 million dollar
financing facility from Southbrook International Investments.  Brown Simpson
Asset Management, LLC, served as advisor to the investor on this transaction.
The funds will be used for working capital and general corporate purposes,
primarily to support the continued commercialization of the company's wireless
filter products.
     ISC president and CEO Ted Laves said, "This financing gives us the
financial flexibility to continue pursuing our strategy of penetrating the
cellular and PCS (personal communications systems) markets.  It provides the
working capital needed to continue executing our business plan, including an
aggressive sales and marketing program for our breakthrough filters that
significantly enhance the call quality and capacity of wireless telephone
systems."  Although the facility permitted the Company to draw up to $3 million
under this tranche, the Company has elected to access only $1.5 million at this
time.
     The securities offered have not been registered under the Securities Act
of 1933 and may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the Securities
Act of 1933.
     Illinois Superconductor Corporation (ISC) is a leader in the
commercialization of high temperature superconducting (HTS) technology for the
wireless telecommunications industry.  The company develops, manufactures, and
markets radio frequency (RF) products to enhance the quality and capacity of
cellular telephone and other wireless telecommunications services.