E NET INC
8-K, 2000-02-08
COMPUTER PROGRAMMING SERVICES
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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): February 7, 2000

                                   e-Net, Inc.
             (Exact name of registrant as specified in its charter)

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<CAPTION>

            DELAWARE                                000-20865                             52-1929282
<S>                                         <C>                              <C>

(STATE OR OTHER JURISDICTION OF             (COMMISSION FILE NUMBER)         (I.R.S. EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)
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                        12800 MIDDLEBROOK ROAD, SUITE 200
                           GERMANTOWN, MARYLAND 20874
                                 (301) 601-8700
              (Address of principal executive offices ) (Zip Code)

       Registrant's telephone number, including area code: (301) 601-8700

                                 NOT APPLICABLE
         (Former name or former address, if changed since last report.)


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                              ITEM 5. OTHER EVENTS.

         Effective February 7, 2000, we have settled the case pending against us
in the United States District Court for the Southern District of Florida
entitled KIRK ET AL. V. e-NET, INC., No. 99-8010-CIV-MIDDLEBROOKS. This case was
brought by the holders of 300,000 warrants issued in connection with the
underwriting of our initial public offering. The warrant holders alleged that we
did not register the re-offer and resale of those warrants when required by the
Underwriting Agreement and Representative's Warrant Agreement between the
Company and Barron Chase Securities, Inc., the underwriter of our initial public
offering . The warrant holders, to whom Barron Chase assigned its rights to
receive those warrants and who include Robert Kirk, the President of Barron
Chase (as holder of 240,000 of the 300,000 total warrants), sought to recover
between $2,562,000 and $2,862,000 in alleged losses. While we continue to
dispute the warrant holders' interpretation of the Underwriting Agreement and
Representative's Warrant Agreement and believe that we complied with our
obligations under the Underwriting Agreement and Representative's Warrant
Agreement, we settled this matter without admitting any liability on our part in
order to avoid the uncertainty and expense of further litigation.

         The settlement involves: the repricing of the warrant holders' 150,000
warrants to purchase shares of e-Net common stock from $8.25 per share to $7.00
per share; the repricing of the warrant holders' 150,000 warrants to purchase
additional warrants from $.20625 per warrant to $-0- per warrant; and the
repricing of the 150,000 underlying warrants to purchase shares of e-Net common
stock, again from $8.25 per share to $7.00 per share. Our insurance carrier will
also make cash payments to the warrant holders totaling $345,000 on our behalf.

                                    SIGNATURE

         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.

Date:    February 8, 2000


                                                   e-NET, INC.

                                              By:  /s/ Donald J. Shoff
                                                   -----------------------------
                                                   Donald J. Shoff
                                                   Vice President of Finance and
                                                   Chief Accounting Officer



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