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
March 15, 2000
(Date of Report)
NETTER DIGITAL ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-26884 95-3392054
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
5125 Lankershim Boulevard
North Hollywood, CA 91601
(Address of principal executive offices) (Zip Code)
(818) 753-1990
(Registrant's telephone number)
Item 5. Other Events.
Effective March 15, 2000, Netter Digital Entertainment,Inc. (the "Company")
ceased operations at its Videssence, Inc. subsidiary. Effective December 31,
1998, the Company had determined to divest Videssence, either through a sale
or cessation of operations, and has reported Videssence as a discontinued
operation since then. Over the past year, the Company has entered into
discussions with several prospective purchasers, but has been unable to
consummate a transaction. Accordingly, the Board of Directors has determined
that it is in the Company's best interests to terminate the operations of
Videssence. The Company expects to incur a non-cash charge of up to $1.8
million in the quarter ended March 31, 2000 in connection with the shutdown
of Videssence.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed by the undersigned
hereunto duly authorized.
NETTER DIGITAL ENTERTAINMENT, INC.
Dated: March 15, 2000 By: /s/ Chad Kalebic
-----------------------------
Chad Kalebic, Chief Financial Officer
EXHIBIT INDEX
99.1 Press release: Closing of Videssence subsidiary (1)
---------------
(1) Filed herewith
Agency Contact: Company Contact:
Neil Berkman Associates Chad Kalebic
(310) 277-5162 Chief Financial Officer
[email protected] (818) 753-1990
NETTER DIGITAL ENTERTAINMENT WILL
CLOSE ITS DISCONTINUED VIDESSENCE, INC. SUBSIDIARY
NORTH HOLLYWOOD, CA, March 15, 2000...Netter Digital Entertainment, Inc.
(NASDAQ:NETT) announced today that it has ceased operations at its
discontinued Videssence, Inc. subsidiary. Videssence has been classified and
operated as a discontinued operation since December 31, 1998. The Company
is continuing its efforts to find a buyer for Videssence, but as there can be
no assurance of a sale, it expects to incur a non-cash charge of up to $1.8
million in the quarter ending March 31, 2000.
About Netter Digital
Netter Digital Entertainment, Inc. acquires, develops and produces
television series and made-for-television and theatrical movies, and provides
post-production, 3-D and special effects animation services, to the television,
movie and video game industries. The Company produced "Babylon 5" and "Crusade"
in association with J. Michael Straczynski for Warner Bros. and Turner Network
Television. The Company also produced the all 3-D animated children's series
"Voltron: The Third Dimension," for World Events, Inc., which is syndicated
worldwide.
The statements contained in this release that are not historical facts may be
deemed to contain forward-looking statements with respect to events, the
occurrence of which involve risks and uncertainties including, without
limitation, demand and competition for the Company's products, and other risks
or uncertainties detailed in the Company's filings with the Securities and
Exchange Commission.
